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USDJPY : Bullish Trend Remain Intact However Short Term Losses May Come

USDJPY : Daily Chart

USDJPY continues to be supported by a 50 day SMA on the daily chart as it tried to break below this level but again came back above this moving average. Currently the pair is testing the support at 106.61. The moving average pattern is also such that it is signaling an uptrend continuation. There is another rising support trend line which will continue to provide support to the pair, so even if it declines from the support levels mentioned on the chart, it will find support from the support trend line.

USDJPY : 4 Hour Chart

On the 4 hour chart, the pair now seems like following an ascending triangle trend according to which it should break out from the resistance at 107.39. Immediate resistance it may find if it continue to rise is at 107.71 or 108.09. However in the short term it seems like the pair might break down also as the 100 day SMA is contracting towards the 200 day SMA and might cross below it signaling a bearish action. So it might be the case that the pair might decline below the rising support trend line. But the losses will be capped in the long term as we saw in the daily chart.