Dollar May Rise to 124.13 Yen on Close Above 123.24, MUFG Says
By Kosuke Goto
June 29 (Bloomberg) -- The dollar may rise to a 4 1/2-year high of 124.13 against the yen should it close above so-called resistance at 123.24 today, said Masashi Hashimoto, a currency analyst at Bank of Tokyo-Mitsubishi UFJ Ltd.
``A New York closing price above that resistance would pave the way for the dollar's advance to 124.13 next week,'' Hashimoto said, citing charts that predict currency movements.
Resistance, a level where sell orders may be clustered, at 123.24 represents the dollar's 5-day moving average against the yen, Hashimoto said. The average has been sliding since June 22, when the dollar retreated from the 4 1/2-year high. It is also the dollar's 14-day average, which has been on a rising trend since late March.
The U.S. currency traded at 123.30 yen as of 12:30 p.m. in Tokyo, from 123.18 in New York late yesterday, when it closed above the 21-day moving average of around 122.60.
In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index.
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