The USD/JPY currency pair on Friday extended declines towards 144.280 after pulling back off Thursday’s highs of about 145.100. The currency pair appears to be trading within a descending channel formation in the 60-min chart.

The currency pair has now fallen to trade closer to the 100-hour moving average line. As a result, the pair appears to be moving closer to the oversold levels 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 Japanese housing starts for May outperformed the expected (YoY) change of -2.2% with a change of -3.5%. On Thursday, the Tokyo consumer price index for June missed the expected (YoY) change of 3.8% with a change of 3.1%. The CPI ex-food and energy for the period also fell short of the forecasted change of 4.4% with a change of 3.8%, while the CPI ex-fresh food missed the estimate of 3.3% with a change of 3.2%.

In the US, the personal consumption expenditures price index for May missed the (MoM) expectation of 0.5% with a change of 0.1%. The (YoY) equivalent also fell short of 4.6% with a change of 3.8%. Elsewhere, the core personal consumption expenditures price index for May missed the expected (MoM) change of 0.4% with a change of 0.3%, while the (YoY) equivalent missed the estimate of 4.7% with a change of 4.6%. On the other hand, personal spending fell short of the forecast of 0.2% with a change of 0.1%, while personal income matched 0.4%.

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 looking to extend the current decline toward 144.015 or lower to 143.719. On the other hand, the bulls will look to pounce on rebounds at about 144.569 or higher at 144.891.

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 targeting extended gains at about 146.398 or higher at 148.709. On the other hand, the bears will be targeting long-term profits at about 141.917 or lower at 139.747.