Dollar May Rise to 100 Yen on Bullish Trend: Technical Analysis
The dollar may strengthen to 100 yen by the end of this year as it continues its bullish trend, said James Chen, chief technical strategist at FX Solutions LLC, citing trading patterns.
The U.S. currency has appreciated 18 percent from its September low of 77.13 yen with “very few major pullbacks,” Chen said today in an interview with Guy Johnson on Bloomberg Television’s “The Pulse.” The dollar’s advance has taken it past Chen’s previous target of 90 yen, he said.
“Within this year, I am looking at 95-100 yen,” he said. “Dollar-yen has been the biggest story in the past several months. It has been a straight upshot. There will be pullbacks and corrections but for the time being, what I’m looking at is a continuation of the upshot.”
The dollar fell 0.1 percent to 90.82 yen at 7:17 a.m. in New York after rising to 91.26 yen, the strongest since June 21, 2010. The greenback last traded at 100 yen in April 2009.
In technical analysis, investors and analysts study charts of trading patterns to forecast changes in a security, commodity, currency or index.