The USD/JPY currency pair on Friday pulled back off 133.859 to trade at about 133.479 after finding strong resistance at the 100-hour moving average line. The currency pair appears to be trading within an ascending channel formation in the 60-min chart.
The pair has now moved to trade just below the 100-hour MA. As a result, the currency pair avoided slipping into 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, the preliminary Michigan consumer sentiment index for August came in better than expected with a reading of 55.1 versus a forecast of 52.5. On the other hand, the initial jobless claims for last week outperformed the forecasted claim count of 263k with a lower tally of 262k, while the producer price index ex-food and energy for July matched the expectation of 7.6% (YoY).
Earlier in the week, the consumer price index ex-food and energy for July missed both the (YoY) and (MoM) expectations of 6.1% and 0.5%, respectively with 5.9% and 0.3%. The general CPI for the period also came short of expectations on both counts.
In Japan, Bank Lending for July beat the expected (YoY) change of 1.4% with a change of 1.8%. On the other hand, the non-seasonally adjusted current account balance for June outshone the estimate of -703.8 billion yen with -132.4 billion yen.
USD/JPY Technical Analysis (the 60-min Chart)
Technically, the USD/JPY currency pair seems to be trading within an ascending channel formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.
Therefore, the bulls will be looking to extend the current run of gains toward 133.883 or higher to 134.267. On the other hand, the bears will look to pounce on pullbacks at about 133.057, or lower at 132.541.
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 a strong long-term bearish bias in the market sentiment.
Therefore, the bears will be targeting long-term profits at about 131.759, or lower at 129.305. On the other hand, the bulls will look to pounce on profits at about 135.559, or higher at 138.077.