The dollar may rise above 80 yen, according to Forecast Pte, citing trading patterns.
The U.S. currency has been above its 200-day moving average since June 18 and its lows have risen from 75.35 on Oct. 31, to 76.03 on Feb. 1 and to 77.66 on June 1, signaling the greenback is on an upward trend, said Pak Lai Ng, a technical analyst at Forecast in Singapore.
“The low is in place now,” said Ng. The dollar is expected to go higher against the yen from here, he said.
The dollar may rise to 80 and then toward 80.60, Ng said. While it touched 80.61 on May 2 and 80.62 on June 25, the currency hasn’t climbed further, signaling there is “strong resistance” at the 80.60 level, he said. The greenback fell 0.1 percent today to 79.50 yen as of 1:29 p.m. in Tokyo.
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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