Will the USD/JPY Break 100.00?

The century mark is a huge psychological level for the USD/JPY and while the deteriorating Japanese economy continues to rally the dollar-yen. With the daily chart still in a strong uptrend, it would not be best to fight the trend on this time frame.

jpy d mt4 3-9-2009 11-36-00 AM.gif

However, there are some intraday set ups that could set up weakness at these heights that would be both shorter term (accounting for a short term correction versus an all-out reversal) and lower risk.

jpy 60 3-9-2009 11-30-43 AM.gif

The pattern set up here can be played as a continuation off the uptrend line support (blue) or if selling pressure commits, there could be a set up as prices break down through this same support level. It is the decision level in the uptrending pattern.

jpy 60 3-9-2009 11-45-38 AM.gif

The uptrend itself will be intact as long as price trades above the Wave. Watch for support between 98.20 to 97.90.