FXstreet.com (Barcelona) - The U.S. Dollar remains trading in range between 99.00 and 99.50; The USD is overbought although its rally is the strongest in years.

According to Nicole Elliott senior technical analyst at Mizuho Corporate bank, sharp moves on both directions can be expected, as we approach 100.00 psychological level: Breaking above 99.00 as many are forced to completely change their outlook on the Yen. No doubt there will be much fretting and excitement as we approach the psychological level. With bullish momentum stronger than it has been in at least ten years, does it really matter that the US dollar is already overbought. Massive extensions will have to be factored in, with equally sharp reversals to follow.