Dollar May Advance to 107.73 Yen Next Week, Bank of Tokyo Says

By Stanley White

July 3 (Bloomberg) -- The dollar may rise to 107.73 yen next week provided it stays above 106 yen today, said Masashi Hashimoto, currency analyst at Bank of Tokyo-Mitsubishi UFJ Ltd.

The U.S. currency is poised to gain as it has held above the so-called support level of its 65-day moving average since April 24, Hashimoto said. First resistance at 106 yen is the dollar's five-day moving average and second resistance at 107.73 yen is near the 200-day moving average, he said. Resistance is a level where sell orders may be clustered, while support is where traders may buy.

``The 65-day moving average has been quite firm, which suggests the dollar has formed a base from which it can push higher,'' Tokyo-based Hashimoto said. ``We're sitting right on top of the five-day moving average, which could pave the way to further gains.''

The dollar traded at 106.06 yen as of 11:57 a.m. in Tokyo from 105.91 yen late yesterday. The U.S. currency rose 0.7 percent versus the yen last month.

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

To contact the reporter on this story: Stanley White in Tokyo at swhite28@bloomberg.net.