Dollar to Reach Six-Week Low on Triangle: Technical Analysis
This article is for subscribers only.
The dollar may fall to a six-week low against the yen as the pair remains in a “triangular consolidation” formation, Gaitame.com Research Institute Ltd. said, citing trading patterns.
The U.S. currency has risen 2.7 percent this year and is likely to pare gains gradually as it trades in the triangle formed by two trend lines, said Daisaku Ueno, president of the unit of Japan’s largest online currency broker in Tokyo. The upper line connects the highs of 85.93 yen on Sept. 16 and 83.98 yen on Feb. 16, and the lower line joins the lows of 80.22 yen on Nov. 1 and 81.13 yen on Feb. 4, according to Bloomberg data.