Black Crows Signal Yen to Gain Versus Euro: Technical Analysis
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The yen is poised to rally to the strongest level in more than a year against the euro, Mitsubishi UFJ Trust & Banking Corp. said, citing technical indicators.
The yen has climbed for three straight weeks since reaching a four-month low on Sept. 19, forming a pattern known as three black crows on the euro-yen candlestick chart. That signals further yen gains, according to Yusuke Fujishima, a Tokyo-based senior manager for currency and financial product trading at Mitsubishi UFJ Trust. He predicts it could reach 130 per euro by March -- the 61.8 percent Fibonacci extension of the climb from a five-year low on Dec. 27 to a two-month high on Feb. 4.