June 8 (Bloomberg) -- The dollar remains in a downtrend against the yen and may weaken to the lowest level since 1995, according to Mizuho Corporate Bank Ltd., citing technical charts.
The dollar rate is still within the so-called cloud of a weekly ichimoku chart, indicating the greenback’s downward trajectory that started in 2007 is still intact, said Hiroyuki Tanaka chief technical analyst at Mizuho Corporate Bank in Tokyo.
“The cloud’s baseline is at 89.94 yen this week,” Tanaka said in an interview. “Should the dollar dip and stay below 90 yen this week, it may extend losses.”
Falling below the baseline means the dollar will go below the cloud of the ichimoku chart and gain downward momentum, according to Tanaka.
Tanaka said the U.S. currency may slip below the 84.83 yen level reached on Nov. 27, which was the lowest since July 1995.
The dollar traded at 91.57 yen as of 7:38 a.m. in Tokyo from 91.37 yen in New York yesterday. The currency advanced 0.9 percent last week.
An ichimoku chart analyzes the midpoints of historic highs and lows. In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index.
To contact the editor responsible for this story: Rocky Swift at email@example.com.