10.04.201304:33:52UTC+00Dollar's ascending bias versus Yen is intact: Technical Analysis

The dollar may continue its advance versus the yen as potential short-term gains in the Japanese currency create opportunities to sell it, JPMorgan Chase & Co. announced, citing trading patterns.

The main aim for the greenback is the key resistance from 99.70 yen to 101.45, an area that holds the 50 percent retracement of the currency’s drop from the 2007 “cycle high” and the 2009 peak,Niall O’Connor, a technical analyst at JPMorgan, wrote in a research note to clients yesterday. Deeper targets start from the 102.35 area, the 76.4 percent retracement from the 2008 high, he wrote.

“The overall upside bias is intact” for the dollar versus the yen, O’Connor wrote. While the pullback in dollar-yen earlier this week “highlights the importance of the next line of key targets, there remains little evidence of a sustained reversal at this point,” he wrote.

The yen moved a notch at 99.01 per dollar as of 11:05 a.m. in Tokyo from yesterday, when it reached 99.66, the bottom level since May 2009.

Fibonacci analysis is based on a theory that prices advance or decline by certain percentages after touching a high or low. Key percentage levels include 23.6, 38.2, 50, 61.8 and 76.4. Resistance refers to an area on a chart where analysts anticipate orders to sell may be clustered.

In technical analysis, investors and analysts study charts of trading patterns to forecast alterations in a commodity, security, currency or index.