Euro May Drop to 12-Yr Low Versus Yen: Technical Analysis – Bloomberg 09-25-12

Salient to Investors:

Daisuke Uno at Sumitomo Mitsui Financial said the charts predict a fall in the euro to a 12-year low against the yen next month. On the weekly ichimoku chart, the conversion line remains below the base line; the spot price is below the cloud; and the lag line is below the spot prices.

Ichimoku charts predict a currency’s direction by analyzing the midpoints of historical highs and lows.

  • The baseline is the sum of the highest high and the lowest low over the past 26 trading days.
  • The conversion line is the same calculation over the past nine trading days
  • The lag line is the most recent closing price plotted 26 days behind the current level.
  • The cloud refers to the area between the first and second leading span lines on the chart and is used to show an area where trading orders may be clustered.

Read the full article at http://www.bloomberg.com/news/2012-09-26/euro-may-drop-to-12-yr-low-versus-yen-technical-analysis.html