The dollar may fall to a seven-week low against the yen should it breach a level of so-called support, Commerzbank AG said, citing trading patterns.
A sustained break below the June 15 low of 78.61 yen may push the dollar toward a support level of 77.65 yen, according to Karen Jones, head of fixed-income, commodity and current technical analysis in London. That’s the June low, she said in the note. Support refers to an area on a price graph where analysts anticipate orders to buy a security.
“Dollar-yen is under pressure and finally sold off,” Jones wrote in a note to clients today.
The dollar fell for the fifth time in six days today, weakening 0.3 percent to 78.57 yen at 3:45 p.m. London time. It reached 77.66 yen on June 1, according to data compiled by Bloomberg. The currency pair is trading below its 200-day moving average of 79.07 yen, according to the data.
In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security currency or index.