FXstreet.com (Barcelona) - The Dollar has been rallying continuously against the Yen, since having bottomed at 87.10 in Jan 25, reaching a maximum level of 99.68 on Mar 5, supported y a negative outlook of Japanese economy.
Nevertheless, 100,00 psychological level seems to strong to take for the Dollar and the USD/JPY suffered a sharp corrective move on Friday, which sent the Dollar 200 pips down to 97.57 low.
Although the pair has managed to recover from Friday's sell-off, Nicole Elliott, senior technical analyst at Mizuho Corporate Bank, observes that the Dollar might have lost its upward strength: Last week's 'doji' candle adds weight to our view that the direction for the Yen is very uncertain indeed and that the rally since late January is probably over. This is because the move was 1.6 times the size of December's rally and at the 50% Fibonacci retracement area of the previous decline.
Elliot advises shorts on the Dollar as we could reach levels below 97.00: Attempt shorts at 98.25; stop above 99.75. Add to shorts on a sustained break below 97.00 for 96.00 and probably 95.00.