We have now reached the top of our defined range for the Yen marked as the thick red resistance line so we need to break and hold above that to maintain our bullish outlook. This would mean USDJPY breaking below the 101.15 – 100.72 area which seems to have been a line in the sand for progress for the Yen for some considerable time. We have already started to see consolidation although if this turned into some bearish chart shapes and some convincing rejections of highs then we have a fairly good indication that this long standing range will hold and we will move back towards the 103 handle for USDJPY. Given that the USD% index is now at lows and very oversold and the JPY% index is at range highs this could make for an interesting USDJPY long but its not risk free. Euro bullishness if we break highs there would cause further dollar weakness so we need to see some consolidation from the Europeans in addition to some bullish signs from USDJPY to be sure. I am bearish JPY% until we break the edges of the range
JPY% Index Resistance (USDJPY Support): USDJPY 101.15, 101.72
JPY% Index Support (USDJPY Resistance): USDJPY 101.62, 102.89
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