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USDJPY : Might Rise But The Gains Would be Limited

(USDJPY : 4 Hour Chart)

USDJPY found support after declining in response of declining treasury yields. The pair is directly proportional to the treasury yields. On the 4 hour chart, the pair found support at 101.17 and rose but still seems consolidating within a narrow range of support at 101.17 and resistance at 101.37. The moving averages on the 4 hour chart is signaling that the pair is going to surge a little breaking the resistance at 101.37 as the 50 day SMA is just trying to cross above the 100 day SMA. Now let’s check if this surge in the pair will help rebounding the bullishness in the pair.

(USDJPY : Daily Chart)

 Looking at the Daily chart, the trend still continues to be downtrend. The moving averages are signaling a decline and the pair should break below the key support at 101.28 as 50 day SMA is contracting towards the 200 day SMA making its way to cross below it. The pair is also consolidating between the falling resistance trend line and a support at 101.28 forming a descending triangle trend according to which the pair should continue to follow downtrend breaking the support at 101.28. So the gains we expect on 4 hour chart doesn’t seems to last long.