On Friday, the USD/JPY currency pair pulled back from the session highs of about 153.50 to trade at about 153.10 after the latest data. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair has now fallen to trade slightly below the 100-hour moving average line. However, the currency pair still has plenty of room left before reaching the oversold levels of the 14-hour RSI.

USD/JPY Fundamentals Overview

From a fundamental perspective, the USD/JPY currency pair trades during a relatively busy period in the U.S. market. On Friday, Japan’s overall household spending for September missed the expected (YoY) change of 2.5%, with a change of 1.8%, down from 2.3% in the corresponding period.

On Thursday, labour cash earnings for September matched the forecasted (YoY) change of 1.9%, up from 1.2% in the previous period, while Jibun Bank Services for October outshone the estimate of 52.4, with a reading of 53.1.

In the U.S., ISM Services PMI for October beat the expected reading of 50.8, with a reading of 52.4, up from the previous month’s equivalent of 50.  On the other hand, the S&P Global Composite PMI for the period missed the expectation of 54.8, with a reading of 54.6, while the S&P Global Services PMI fell short of 55.2, with a reading of 54.8.

Elsewhere, the ADP employment change for the month increased to 42k, up from the previous month’s equivalent of -29k, beating the forecasted change of 25k.

USD/JPY Technical Analysis (the 60-min Chart)

Technically, the USD/JPY currency pair trades within a descending channel formation in the 60-minute chart. However, the 14-hour RSI still has room left to run before reaching the oversold levels of the indicator.

Therefore, the bears will look to stretch the latest pullback towards 152.6 or lower to 152.17. On the other hand, the bulls will look to pounce on rebounds at about 153.50 or higher at 153.99. 

USD/JPY Technical Analysis (the Daily Chart)

In the daily chart, the USD/JPY currency pair trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid advancing into overbought conditions.

Therefore, the bears will look to extend the current pullback towards 149.51 or lower to 146.09. On the other hand, the bulls will look to pounce on profits at about 156.37 or higher at 159.80.