Dollar May Reach 2009 High Versus Yen: Technical Analysis
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The dollar is likely to trade at about 90 yen in the coming weeks before resuming its climb toward 99.74, Forecast Pte said, citing trading patterns. That would be the highest level since May 2009.
The dollar is looking “overbought” based on its 14-day relative strength index versus the yen, according to Pak Lai Ng, a Singapore-based technical analyst at Forecast. The RSI was at 65 today, near the 70 level some analysts see as a sign the asset’s price may reverse direction after rising too rapidly. “The longer-term trend is still up for dollar-yen, but it has to correct some of the up move first,” he said.