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USDJPY : Following Rising Channel Trend, No effect of New Hone Sales Data

(USDJPY : Hourly Chart)

USDJPY seems like trading within a rising Channel on the hourly chart. It is declining even after the better than expected New Home Sales data. According to the U.S. Census Bureau sales of new single family houses in April 2014 increased 6.3% above the revised reading of March to 433K and beating the economist’s expectations for an increase to 426K. However the reading is below the April 2013 estimate of 452K.

The pair may continue to decline until it find support from the rising support trend line. Seems like investors are not much impressed with the New Home Sales data. Another indicator which is 50 day SMA has just now crossed the 200 day SMA to move above giving a bullish signal. So may be the pair rise after it find support from rising support trend line of the channel. Looking at the stochastic oscillator the %K line (Red Line) is still above the %D line (Blue line) giving a signal that the pair might continue the downtrend.