FXstreet.com (Barcelona) - The Dollar continues rallying against the Yen, from 87.10 low on Jan 21, the Dollar has risen past 3-month high at 98.70 and, above 99.00 crawls towards psychological resistance at 100.00, the pair is heavily overbought but USD rally seems the strongest in years.

According to Barclays Capital, the Dollar could go through a correction before squeezing higher, possibly as far as 102.00 later on the month: The short-term trend for USD/JPY is up and we regard the recent pullback as a buying opportunity. While allowing for a pullback to 96.35 yen, or even to the breakout level, we would continue to target 102 and higher later in the month. Intraday, the scene is set for a test of resistance at 98.90.