Strong-dollar scenario revival is up for debate: Analyst The dollar was flat against the yen in Asia trade Monday, with profit taking kicking in to erase some of the greenback’s weekend gains after upbeat U.S. jobs data. The dollar USDJPY, -0.49% was down to ¥118.85 compared with ¥118.83 late Friday in New York. Earlier in Asia trade, the dollar was tracking its weekend strength and was above the ¥119-line. But the U.S. currency later found itself top heavy and started ratcheting down with investors locking in profits, bringing the greenback to as low as ¥118.73. Weak China trade data figures released Sunday also put downward pressure on the commodity-linked Australian dollar against the yen, which kept a lid on gains in the U.S. dollar against the Japanese currency. China’s exports posted a surprising 3.3% drop in January, while imports fell a sharp 19.9% during the month, partly due to weak domestic demand as well as big declines in oil and raw material prices. “We are seeing a fallback from an upswing,” with the greenback unable to surpass technical resistance of ¥119.30, said Mizuo Securities FX strategist Kenji Yoshii. Yoshii said the situation in the eurozone is still shrouded in uncertainty, making the dollar vulnerable to profit taking against the yen. But he said the dollar will likely consolidate its downside and may stay between ¥118.00 and ¥119.00 this week. But the currency market may still have to wait until fresh clues possibly coming out from Federal Reserve Chair Janet Yellen’s semiannual congressional testimony, slated for later this month. Ahead of top-level diplomacy on the Ukraine crisis, German Chancellor Angela Merkel has given Russian President Vladimir Putin until Wednesday to agree to a road map to end the fighting in eastern Ukraine, according to Western officials. If in her assessment Russian intransigence has blocked a deal, they said, Germany will likely move to step up European sanctions against Russian companies, possibly including broader asset freezes. In Greece, Prime Minister Alexis Tsipras Sunday reiterated that Greece would seek a bridge loan from its international creditors until June, refusing to accept an extension of its current bailout, as demanded by European partners. “The focus this week is whether a strong dollar scenario will revive,” said IG Securities market analyst Junichi Ishikawa in a Monday morning note. The dollar successfully broke out of its recent tight range between ¥117 and ¥119. But whether a strong dollar will be an enduring trend depends on upcoming U.S. data such as retail sales scheduled for Thursday. “U.S. stock market developments are key for the dollar to test ¥120,” Ishikawa said. Friday’s dollar rally falling short of ¥120 suggested higher Treasury yields alone probably aren’t enough for the pair to challenge that level. Among other currency pairs, the euro EURUSD, +0.27% was at $1.1332 from $1.1320 and at EURJPY, -0.22% ¥134.70 from ¥134.50. The WSJ Dollar Index BUXX, -0.26% , a measure of the dollar against a basket of major currencies, was down 0.01% at 85.71. marketwatch