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Double edged sword? You're saying its deflationary?
The bottom line is this. A strong dollar is caused by good results and better than expected jobs report which means higher expectations of an increase in interest rates (which will not happen this year).
Interest rate increase would mean the dollar has more yield and therefore people are flocking to it. A stronger dollar means lower prices as you say and combined with a low oil price, even lower prices and therefore inflation. Therefore also lower corporate profits but also because it makes American exports more expensive for trading partners.
The US government will never allow the US dollar to strengthen too much so you can expect QE next year. It's just irrational that a currency that has been printed to extinction is as strong as it is. It's good for us holders of USD but it makes no sense.
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