Dollar May Drop to 103 Yen Before Bouncing Back, GCI Says: Chart
WASHINGTON - MARCH 2: An uncut sheet of the redesigned $10 bill is seen after a news conference to commemorate the first day of circulation of the new notes at the National Archives March 2, 2006 in Washington, DC. The new $10 note is the latest issue in the new series of U.S. currency, with features including color-shifting ink, watermark and security thread which are easy to check by naked eye.
Photographer: Alex Wong/Getty ImagesThe dollar’s tumble against the yen is driving it down so fast as to make it ripe for a sudden pullback, according to Tatsuhiro Iwashige, the chief foreign-exchange strategist of the investment solutions group at Tokyo-based hedge fund GCI Asset Management. Fibonacci analysis, a tool used by traders to find key turning points for currencies, shows a slump toward 103.40 is possible, but that such a move may take it toward the limits of its short-term gains. “I wouldn’t recommend selling dollars from current levels around 106 yen, which is the dollar’s bottom this year,” Iwashige said.