Now that we have broken above the 100.00 level a little more convincingly than Friday’s brief break and have reached a high of 100.88 so far, the highest we have seen USD/JPY trade at since early November 2008, it looks to me like we should trade in the 103.80/00 region sometime before the end of the week. This is the region i am targeting to take profit on USD/JPY whilst running a stop below 99.50.
I have to admit, the USD/JPY is doing everything right on the dailies to head higher, having broken back above the 200 DMA. Some of the technical studies on the daily are in overbought territory but still have enough room to allow the USD/JPY to spike towards the 103.80/00 region.
As Sean pointed out earlier, the weekly chart highlights the significance of the 103.80/00 region as a break above here would take out the down-sloping channel that has been in place on the weeklies since late June 2008.
