FXstreet.com (Barcelona) - The USD/JPY remains trading in a range between a minimum of 97.00 to a maximum level right below 98.00, after some retracement from Feb 26 high at 98.72.
The USD rally from 89.82 (Feb 12 low) seems to have found a important resistance area at 98.72, and the pair has opened a consolidation move.
According to Benny Menashe, economist at Finotec Group Inc, the USD/JPY could drop back lower rather than rallying further: The dollar's 9 percent rally against the yen in the past month may stall at so-called resistance at 98.89. The dollar traded at 97.41 yen as of 6:45 a.m. in London from 97.57 yen late yesterday in New York on Feb. 27 when it touched 98.61, near 98.71 reached on Feb. 26, the highest level since Nov. 10. In the next two weeks the greenback may fall to 94.63 yen, the Jan. 6 high and a previous resistance level.