By: DailyForex.com
The USD/JPY pair did almost nothing during the Monday session, but quite frankly most markets around the world were real snoozers at best. Because of this, there isn't a whole lot that can be disseminated as far as information is concerned from the Monday session. However, looking at this chart it is obvious that the 100 area still looms large as resistance.
The 100 handle is going to have a certain amount of psychological significance simply because of the number, but in reality there is something more significant going on at that level. There is quite a bit of talk out there of option barriers just above the 100 handle, keep in the market down. If this were true, the one thing you can take from it is that eventually those options expire. In other words, sooner or later in the people who have been barriers simply wouldn't care, allowing this market to go much higher. That in and of itself would continue the bullish case.
Bank of Japan still matters
The Bank of Japan still continues to talk about working against the value of the Yen. I don't think this is going change, and they have recently even stated that they were very comfortable having a range of 95 on the bottom, and 100 on the top. With that being the case, some traders out there might be a little hesitant to try and push this market higher. However, it is only a matter of time before something happens in the barrier on the upside breaks.
There is also the argument that we may be trying to form an ascending triangle at this point in time. Obviously, the 100 level would be the resistance level, but there is the possibility of drawing an uptrend line at this point in time that would suggest another 400 pip move on a breakout. This could be the beginning of a fairly significant move, and that measurement would have us reaching the 104 level on that move. Quite frankly, I believe that the 110 level will eventually be targeted, but of course it won't be a straight line up.
