FXstreet.com (Barcelona) - The USD/JPY is going through a strong bullish momentum , reaching levels around 97.00, at its highest levels in three years after a rally of almost 1,000 pips from 89.60 in Feb 12.

The Dollar is strongly overbought but Nicole Elliott, senior technical analyst at Mizuho Corporate Bank, affirms that the USD is going through a strongly bullish momentum: Scampering up a lot faster than we had imagined, probably because the move has taken so many by surprise. The US dollar is overbought but bullish momentum is the strongest in years.

According to Elliott, the pair could consolidate around current levels this week to explore higher areas in March: While we may have done enough for this week some time in March we continue to favour a squeeze to 98.00/98.50 or so.