FXstreet.com (Barcelona) - The Dollar Yen has suddenly dropped about 100 pips from 99.30 to 98.30, and has recovered a bit part of the decline reaching some pips shy of 99.00 resistance level.
A nasty spike down ahead of the U.S. session opening, which has been almost completely reversed, the pair struggles now to get over the 99.00 support level in order to get on the way to 100.00 psychological resistance level.
Nicole Elliott, senior technical analyst at Mizuho Corporate Bank warns about sharp moves when approaching important levels such as it is the 100.00 resistance: 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.