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USDJPY : Following Downward Channel Trend

(USDJPY : 4 Hour Chart)

USDJPY is trading within a downward sloping channel signaling a downtrend on the 4 hour chart. Although 100 day SMA tried to reverse the downtrend to uptrend by crossing above the 200 day SMA but the 50 day SMA is contracting towards the 100 day SMA to cross below it signaling a downtrend. Any breakout from the resistance trend line of the channel will signal a reversal. Also 101.48 seems to be a key support and the pair might reverse the trend from this support level.

Same like Gold, Japanese Yen also strengthen whenever there is some economic downturn or political tensions in any part of the world.Currently Yen is down because of the tensions in Iraq which continues to weigh on market sentiment amid fears over oil supply. Also this week on Wednesday, Fed is going to release a report which includes projection for inflation and economic growth over the next 2 years and also interest rate forecasts. So investors would be interested in the timing of possible interest rate increases.