The Australian dollar will probably climb above 83 yen for the first time in two months, according to Bank of Tokyo Mitsubishi UFJ Ltd., citing trading patterns.
The Australian dollar’s five-day moving average against the yen rose above its 200-day moving day average this week, forming a “golden cross,” a bullish signal for the so-called Aussie, according to Teppei Ino, an analyst in Tokyo at the unit of Japan’s largest financial group.
“Should the Aussie rise above its 90-day average, it may extend gains to 83.23 yen, the 61.8 percent retracement from its March 19 high of 88.64 to its June 1 low of 74.48 on the Fibonacci chart,” Ino said, referring to the theory prices move by certain percentages after reaching a new high or low.
Australia’s currency fetched 82.12 yen at 10:01 a.m. in Sydney from yesterday, when it touched 82.19, the most since May 4. The Aussie has risen 7.7 percent against the yen in the past month, the third-biggest gainer among its 16 major peers. The last time it traded at 83.23 yen was on May 2.
In technical analysis, investors and analysts study charts of trading patterns to forecast changes in a security, commodity, currency or index.
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