The USD/JPY currency pair on Friday pulled back off the session highs of about 149.83 to trade at about 149.52. The currency pair appears to be trading within a descending channel formation in the 60-min chart.
The currency pair continues to trade above the 100-hour moving average line despite the pullback. The pullback pushed the currency pair back to the normal trading zone 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 October missed the expectation of 67.4 with 63.
On Thursday, the consumer price index for September beat the expected (MoM) change of 0.3% with a change of 0.4%, while the (YoY) equivalent outshone the forecast of 3.6% with 3.7%. The consumer price index ex-food and energy matched both the (MoM) and (YoY) forecasts of 0.3% and 4.1%. The initial jobless claims for last week beat 210k with a tally of 209k.
In Japan, bank lending for September missed the estimate of 3.1% with a change of 2.9% (YoY). Machinery Orders for August missed both the (MoM) and (YoY) expectations of 0.4% and -7.3%, respectively with a change of -0.5% and -7.7%. The producer price index for September also fell short of the (YoY) and (MoM) estimates of 2.3% and 0.1%, respectively with changes of 2% and -0.3%.
USD/JPY Technical Analysis (the 60-min Chart)
Technically, the USD/JPY currency pair appears to be trading within a descending channel formation in the 60-min chart. This indicates a significant short-term bearish bias in the market sentiment.
Therefore, the bears will be targeting extended declines at about 149.36 or lower at 149.16. On the other hand, the bulls will be targeting profits at about 149.67 or higher at 149.83.
USD/JPY Technical Analysis (the Daily Chart)
In the daily chart, the USD/JPY currency pair appears to be trading within an ascending channel formation. This indicates a significant long-term bullish bias in the market sentiment.
Therefore, the bulls will be looking to ride the current rally towards 150.32 or higher to 151.95. On the other hand, the bears will be targeting long-term profits at about 148.26 or lower at 147.22.