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USDJPY : A Rebound is Expected, Losses Seems Capped

USDJPY : 4 Hour Chart

USDJPY again reached its previous resistance level at 107.34 on the 4 hour chart as investors dampened the demand for safe haven because of the upbeat US data last week. However it was not able to hold gains above this resistance and again declined towards the rising support trend line. Currently it is testing support at 106.77 which earlier also provided support to the pair. If the pair breaks below the rising support trend line we might see it paring its gains and the bearish trend might continue to dominate. However if the pair is able to hold gains above this level, the pair should break above the resistance at 107.34. The next nearest resistance is at 107.71, if the pair is able to break above 107.34.

USDJPY : Daily Chart

On the daily chart, we can see that the pair is still supported as there is a rising support trend line on the chart which will prevent the pair in declining further. So it would be too early to say that the pair is following a bearish trend. There are various support levels on the chart, which pair have to test before declining to the rising support trend line. Also seems like the 50 day SMA is currently supporting the pair.