USDJPY is surging today following the release of impressive US unemployment claims data which indicated that the number of people who applied for regular state unemployment insurance benefits in the week ending July 19 fell by 19K to 284K. This is the lowest level since February 2006 signaling an improvement in the labor market. Economists were expecting the reading to increase to 310K. The four week moving average which is a better gauge of the labor market condition fell by 7250to 302K which is the lowest level since 2007. (USDJPY : 4 Hour Chart) On the 4 hour chart, the pair was consolidating within an ascending triangle signaling a surge. The data also came out to be strong. So the pair broke the resistance of the triangle and surged. The next key resistance which the pair will be testing now is at 101.75. If the pair breaks this resistance also it might surge to 101.82. (USDJPY : Daily Chart) On the daily chart, we can see that the pair is experiencing resistance from the falling resistance trend line. So the pair might surge till the resistance trend line. If it again pull back the bearish trend will remain intact and the pair will continue to trade within the descending triangle. Accordingly the pair might break the key support at 101.06 and continue to decline. However if the pair breaks the falling resistance trend line and continue to surge, it will signal a reversal and bearish trend will fade away.