Dollar May Climb to 103.10 Yen This Week, Forecast's Ng Says

By Stanley White

Oct. 20 (Bloomberg) -- The dollar may rise to 103.10 yen this week, said Pak Lai Ng, a technical analyst at Forecast Singapore Pte.

The U.S. currency is poised to gain as its daily moving average convergence/divergence chart has switched to a buy signal from a sell signal for the first time in two weeks, according to Ng. First resistance at 103.10 yen is near the dollar's Oct. 14 high, he said. Should the greenback rise above that level, it may move to the second resistance at 103.50 yen, which is near last month's low, he said. Resistance is where traders may place sell orders.

``The charts are showing some strength in the dollar,'' said Ng. ``The currency is trying to form a base and may make a corrective move higher.''

The dollar rose to 102.13 yen at 3:05 p.m. in Tokyo from 101.69 late in New York on Oct. 17. It has gained 4.2 percent from a seven-month low of 97.92 yen on Oct. 10.

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

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