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USDJPY : Testing Key Support at 106.98,Bullish Trend Remain Intact

USDJPY : Hourly Chart

USDJPY trying to hold gains today as trading within a sideways pattern on the hourly chart. Currently the pair is trading between the support and resistance at 107.08 and 107.50 respectively. If it breaks above the resistance it might again find resistance from the falling resistance trend and the 50 day SMA.

Demand for Safe haven increased after Fed announced that it will not hike interest rate soon. Fed Reserve Vice Chairman Stanley Fischer on Saturday said that there will be a global impact when Fed will increase interest rate but clear communication with the market will prevent some big fluctuations in the market. He also mentioned that the Fed will delay interest rate hike until it find an evidence that the U.S. economy have grown far enough on the grounds of Inflation and Job market on which Fed is mainly focusing.

USDJPY : 4 Hour Chart

On the 4 hour chart, the pair seems like following a falling wedge pattern which gives a bullish signal according to which the pair should break out from the falling support trend line of the falling wedge. However if the pair breaks below the support trend line of the wedge, the bullish trend or the falling wedge pattern will fade away. Also the pair declined below the 200 day SMA signaling a downtrend continuation.

USDJPY : Daily Chart

 On the daily chart, the pair is currently testing the key support at 106.98. However the losses still seems capped as there seems a rising support trend line which will prevent the pair in declining further. Before that 50 day SMA might also provide support for the pair. So the pair still seems supported in the long term. The moving average pattern on the chart is also signaling an uptrend continuation.