On Tuesday, the USD/JPY currency pair extended Monday’s pullback to trade at about 156.24 after the latest U.S. data. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair bounced back late to trade closer to the 100-hour moving average line. Tuesday’s rebound prevented the currency pair from 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 Tuesday, the US durable goods orders for October missed the expectation of -1.5%, with a change of -2.2%. The durable goods orders for the period also fell short of 0.3%, with a change of 0.2%.

On the other hand, the industrial production for October missed the expected change of 0.1%, with a change of -0.1%. The industrial production for November came in better than expected, with 0.2% versus a forecast of 0.1%. The capacity utilization for October was in line with the estimate of 75.9%, down from 76% in September. In November, it rose back to 76%, beating the forecast of 75.9%.

Elsewhere, the preliminary annualized US gross domestic product for Q3 grew by 4.3%, compared to a forecast of 3.3%. The preliminary gross domestic product price index for the quarter also beat the expectation of 2.7%, with a change of 3.7%. On the other hand, the personal consumption expenditures prices for Q3 matched the expected change of 2.8%. The core personal consumption expenditures for the period were also in line with the estimate of 2.9%.

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 has recently bounced back to avoid falling into oversold conditions.

Therefore, the bulls will look to extend the current rebound towards 157.05 or higher to 157.82. On the other hand, the bears will look to pounce on profits at about 155.35 or lower at 154.55. 

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 recover from overbought conditions.

Therefore, the bears will look to ride the current run of declines toward 153.19 or lower to 150.32. On the other hand, the bulls will look to pounce on profits at about 158.84 or higher at 161.82.