The USD/JPY currency pair on Friday bounced off the 100-hour moving average line after pulling back on Thursday. The currency pair continues to trade within a gently ascending channel formation in the 60-min chart.
The pair has now advanced to trade a few levels above the 100-hour MA after the rebound. As a result, the currency pair seems to be moving closer to the overbought conditions of the 14-hour RSI.
USD/JPY Fundamentals Overview
From a fundamental perspective, the USD/JPY currency pair is trading at the back of a relatively busy period in both markets. On Friday, US existing home sales for October came in stronger than expected whereas home sales change missed estimates.
On Thursday, the Philadelphia Fed Manufacturing Survey for November missed the expectation of -6.2 with a reading of -19.4, while the initial and continuing claims beat estimates. Earlier in the week, US retail sales for October beat the expected (MoM) change of 1% with a change of 1.3% while the retail sales control group outshone the forecast of 0.4% with a change of 0.7%.
In Japan, the National CPI ex-fresh food for October beat the expected (YoY) change of 3.5% with a change of 3.6%. On the other hand, CPI ex-food and energy outperformed the expectation of 1.9% with a change of 2.5%, while the general National CPI smashed the estimate of 2.7% with a (YoY) change of 3.7%. Earlier in the week, Japanese exports and imports for October outshone expectations.
USD/JPY Technical Analysis (the 60-min Chart)
Technically, the USD/JPY currency pair seems to be trading within a gently ascending channel formation in the 60-min chart. This indicates a slight short-term bullish bias in the market sentiment.
Therefore, the bulls will be targeting short-term profits at about 140.759 or higher at 141.227. On the other hand, the bears will look to pounce on profits at about 139.790 or lower at 139.305.
USD/JPY Technical Analysis (the Daily Chart)
In the daily chart, the USD/JPY currency pair seems to be trading within a sharply descending channel formation. This indicates s strong long-term bearish bias in the market sentiment.
Therefore, the bears will be looking to pounce on profits at about 138.417 or lower at 136.095. On the other hand, the bulls will be targeting long-term profits at about 142.006 or higher at 144.117.