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.