FXstreet.com (Barcelona) - The USD/JPY has stopped its rally just below the 97.00 level. The pair has risen more than 270 pips in today's session with the USD rising to levels not seem since late November.
After breaks the 90.70 resistance, currently the pair is trading at the 96.70/80 band and it is on the way to test 97.35 resistance (Nov 24 high).
The Pair has entered into overbought territory, thus a slight correction towards 96.26 or to 96.00 would not be off the cards.
According to James Chen, Chief Technical Strategist at FX Solutions, the pair is confirming a bullish double bottom reversal: Tentative confirmation of a bullish double-bottom reversal is currently in the making, as price has exceeded the peak between the two extreme lows around 87.00. With any further bullish momentum that takes out the 98.00 level, price could target further resistance in the major 100.00 price region.