Dollar Is `Overbought' Versus Yen, May Fall to 105.61, RBC Says
Dollar Is `Overbought' Versus Yen, May Fall to 105.61, RBC Says
by takeshitsai on Mon Jun 23, 2008 9:20 am
The dollar is ``overbought'' against the yen according to charts used to predict price movements, and may fall to 105.61, said George Davis, chief technical analyst at RBC Capital Markets, a unit of Canada's biggest bank.
The level of 105.61 yen is likely to provide so-called support as it is on an ascending trend line that began on March 17, according to RBC's chart. The line connects lows of 95.76 yen on March 17, 102.74 yen on May 22, 103.88 yen on June 3 and 104.43 yen on June 9, according to data compiled by Bloomberg. Support is a level where buy orders may be clustered.
``Overbought valuations set the stage for a retracement to 105.61,'' Toronto-based Davis wrote in a research note yesterday, citing the dollar's stochastic oscillator chart against the yen.
Takeshitsai's opinion : I don't think this might happen , and i predict USD/JPY may bounce back to 108.00 level this week . I recommend buy below 107.00 level .
The level of 105.61 yen is likely to provide so-called support as it is on an ascending trend line that began on March 17, according to RBC's chart. The line connects lows of 95.76 yen on March 17, 102.74 yen on May 22, 103.88 yen on June 3 and 104.43 yen on June 9, according to data compiled by Bloomberg. Support is a level where buy orders may be clustered.
``Overbought valuations set the stage for a retracement to 105.61,'' Toronto-based Davis wrote in a research note yesterday, citing the dollar's stochastic oscillator chart against the yen.
Takeshitsai's opinion : I don't think this might happen , and i predict USD/JPY may bounce back to 108.00 level this week . I recommend buy below 107.00 level .
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