Not much has changed in the USD/JPY with the consolidation process dragging on. The sideways movement of the USD/JPY over the last three weeks signifies the relevance of the psychological 100 level.

Investors are still reluctant to test it, indicating they haven't bought into a bottom in U. S. equities yet. While the Japanese economy is incredibly weak, America's certainly isn't putting on a stellar performance.

Therefore, if the U. S. economy continues to shell out more negative economic data the USD/JPY should continue its consolidation or possibly make a large movement south.

The driving forces shooting the currency pair above 100 will surprisingly positive economic data from the U. S. or devastating news out of Japan. However, we caution investors not to grow complacent during consolidation, for when the directional decision is made the movement will be quick and sharp.

Fundamentally, we maintain our resistance of 99.05 with additional resistances hanging at 99.96, 100.69, and 101.53. To the downside, we hold our 98.25 support with additional supports sitting at 97.66, 97.22, and 96.59. The USD/JPY is currently exchanging at 98.57.

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