Yen May Reverse Downward Trend Versus Dollar: Technical Analysis
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The yen may reverse a weakening trend against its U.S. counterpart if it appreciates beyond its nine-day high, according to JPMorgan Chase & Co., citing technical indicators.
The Japanese currency fell 3.9 percent against the dollar over seven days beginning Nov. 14 before the greenback failed to break a key resistance level from 82.50 to 83.20, Niall O’Connor, a New York-based technical analyst at JPMorgan, wrote yesterday in a note to clients. If the dollar depreciates versus the yen through a support level from 81.40 to 81.70, it will test a breakout area at 80.60. That would be the yen’s highest level since Nov. 15.