The euro pierced its two-week range against the yen, signaling “bullish pressure” that could push the shared currency to 102.15, according to Barclays Plc.
The 17-nation euro had traded between 98.55 yen and 100.95 yen since June 7. It closed at 101.07 yesterday, pushing out of the range in a move that could propel it higher, Barclays technical strategists led by Jordan Kotick in New York wrote in a note to clients. The currency is poised to appreciate to the 101.65 to 102.15 range, before pulling back, they wrote.
The trend should hold if the euro remains above its “channel base” of 99.40 yen, they wrote.
The euro fell 0.2 percent to 100.91 yen at 11:26 a.m. in New York after reaching 101.63 yen, the strongest level since May 22. The shared currency dropped 1.1 percent to $1.2574.
In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index. Support refers to a level where buy orders may be clustered.