On Thursday, the USD/JPY currency pair pulled back from the session highs of about 155.50 to trade at about 154.65. The currency pair trades within a descending channel formation in the 60-minute chart.
The pair has now fallen to trade a few levels below the 100-hour moving average line. As a result, the currency pair is on the verge of entering 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 Thursday, U.S. Challenger Job Cuts for November fell to 71.321k, down from the previous month’s equivalent of 153.074k. On Wednesday, the ISM Services PMI for November came in better than expected, with 52.6 versus a forecast of 52.1, while the S&P Global Composite PMI for the period fell short of 54.8, with a reading of 54.2.
On the other hand, the ADP Employment Change for November fell to -32k, down from 47k in October, missing the forecasted change of 5k. The industrial production for September exceeded the expected (MoM) change of 0%, with a change of 0.1%.
Earlier in the week, the ISM Manufacturing PMI for November missed the forecast of 48.6, with a reading of 48.2, while the ISM Manufacturing Prices Paid for the period fell short of 59.5, with a reading of 58.5. Traders will be waiting for the latest weekly initial jobless claims data and the September factory orders data later on Thursday.
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. The 14-hour RSI also supports a short-term bearish bias as it moves closer to oversold conditions.
Therefore, the bears will look to extend the latest pullback towards 153.74 or lower to 152.92. On the other hand, the bulls will look to pounce on rebounds at about 155.50 or higher at 156.35.
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 entering overbought conditions.
Therefore, the bears will look to extend the current pullback towards 151.64 or lower to 148.30. On the other hand, the bulls will look to pounce on profits at about 157.81 or higher at 160.94.