FXstreet.com (Barcelona) - The USD/JPY is moving within a sharply upward trending channel since bouncing up at 89.80 in Feb 12, breaking crucial resistance line at 94.64 (Jan 9 High) so far to advance towards the highest levels since early December.

Nicole Elliott, senior technical analyst at Mizuho Corporate Ban, expects the pair to consolidate at current levels for the rest of the week: No doubt to the surprise of many, dollar/Yen has squeezed up through the Ichimoku 'cloud' and just now through January's high at 94.65. This might turn out to be an 'extension' and later it will consolidate below here for a week or two.

On a longer term, Elliott expects the current upward trend to continue driving the pair up: However, depending on how much momentum is generated by the other Yen crosses we shall have to allow for a sustained burst through here some time in March. Note that a brief squeeze up as high as 98.00 some time in H1 2009 cannot be ruled out. While this takes place the tendency will be for the Yen to loose ground against a host of other major currencies, taking Yen crosses higher.