Dollar Moving Average Signals Gain to 84 Yen: Technical Analysis

The dollar may strengthen more than 5 percent against the yen after the U.S. currency exceeded its 200-day moving average, Morgan Stanley analysts said, citing trading patterns.

The dollar rose for an eighth day to 79.86 yen at 1:37 p.m. London time, the longest run of gains in seven years. The advance took it above the 200-day moving average, which was at 79.44 yen today, according to data compiled by Bloomberg.

“We expect the dollar-yen to extend gains further over the coming weeks and maintain our 84 target,” strategists led by Hans Redeker, the head of currency strategy in London, wrote in an e-mailed report today. “The yen is the weakest of the G-10 currencies.”

The last time the greenback traded above 84 yen was on March 21.

The U.S. currency rose 0.5 percent in the past month, according to Bloomberg Correlation-Weighted Indexes, which track 10 developed-market currencies. The yen fell 1.9 percent.

In technical analysis, investors study charts of trading patterns and prices to forecast changes in a bond, commodity, currency or index.

To contact the reporter on this story: Anchalee Worrachate in London at

To contact the editor responsible for this story: Paul Dobson in London at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to 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.