FXstreet.com (Barcelona) - The Yen has posted a considerable rally against the Dollar on Monday, from session highs at 98.35; the USD/JPY has dropped all the way to test 96.60 level ahead of the European session opening.
If the pair fails to remain above 96.60 (19 Mar high) potential further decline could find support at 96.25 intraday level and below here 95.65 (12 mar low). On the Upside, bullish reaction would face resistance at 97.80 and 98.33 intraday levels, and above here, 99.00 (Mar 17 high).
According to Franco Shao, technical analyst at ForexCycle.com, the Dollar-Yen could be forming a short-term cycle top: USDJPY might be forming a short term cycle top at 98.86 level on 4-hour chart. Key support is now at 96.99, a break below this level will indicate that the cycle top has been formed and the rise from 93.53 has completed, and then pullback to 95.00 is expected to follow.