Dollar’s Advance Against Yen Set to Resume: Technical Analysis

The dollar is poised to resume a bullish trend against the yen and may rise to a one-year high as a corrective decline ends, according to Bank of America Corp.

“We had this correction, which looks like it’s run its course,” MacNeil Curry, head of foreign-exchange and interest- rates technical strategy at Bank of America in New York, said in a telephone interview. “The way we’ve rallied off of those lows is an impulsive move to the top side, which indicates the larger bull trend is resuming.”

The dollar has gained 1 percent since April 16, when it fell to as low as 80.30 yen after a 4 percent drop since Mid- March. The dollar’s ability to rally off that low, a level just above its pivot support range of 79.54 to 80.15 yen, indicates it may gain further to 84.82 or 85.45 yen, Curry said.

Pivot refers to levels at which a currency or asset price changes direction. Support is an area on a chart where buy orders may be clustered.

The greenback was little changed at 81.22 yen at 2:45 p.m. in New York. It has gained 5.6 percent this year.

To contact the reporter on this story: Catarina Saraiva in New York at asaraiva5@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.