Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Dollar’s Upward Bias Against Yen Is Intact: Technical Analysis

April 10 (Bloomberg) -- The dollar may resume its advance against the yen as potential short-term gains in the Japanese currency provide opportunities to sell it, JPMorgan Chase & Co. said, citing trading patterns.

The focus for the greenback is the key resistance from 99.70 yen to 101.45, an area that contains the 50 percent retracement of the currency’s drop from the 2007 “cycle high” and the 2009 peak, Niall O’Connor, a technical analyst at JPMorgan, wrote in a research note to clients yesterday. Deeper targets start from the 102.35 area, the 76.4 percent retracement from the 2008 high, he wrote.

“The overall upside bias is intact” for the dollar versus the yen, O’Connor wrote. While the pullback in dollar-yen earlier this week “highlights the importance of the next line of key targets, there remains little evidence of a sustained reversal at this point,” he wrote.

The yen was little changed at 99.01 per dollar as of 11:05 a.m. in Tokyo from yesterday, when it touched 99.66, the weakest level since May 2009.

Fibonacci analysis is based on a theory that prices rise or fall by certain percentages after reaching a high or low. Key percentage levels include 23.6, 38.2, 50, 61.8 and 76.4. Resistance refers to an area on a chart where analysts anticipate orders to sell may be clustered.

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

To contact the reporter on this story: Naoto Hosoda in Tokyo at nhosoda@bloomberg.net

To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.