By Yasuhiko Seki and Kazumi Miura
Nov. 13 (Bloomberg) -- The British currency may fall to the lowest level in more than one month against the yen, Gaitame.com Research Institute Ltd. said, citing trading patterns.
The pound is about to enter a downtrend as it forms a so- called dead cross in which its short-term conversion line falls below a longer-term baseline on an ichimoku chart, said Kumiko Gervaise, a Tokyo-based currency analyst at the research unit of Gaitame, Japan’s biggest currency margin trader.
“The 60-day moving average has come to a critical level in comparison to the 200-day moving average, which may open the way for the U.K. currency to decline toward the lowest level this month and eventually 140 yen,” she said.
The pound’s 60-day moving average stood at 148.654 and the 200-day moving average was at 148.653, an ichimoku chart shows. The pound fell to as low as 145.81 on Nov. 2, and the currency last traded below the 140 yen mark on Oct. 7.
The pound was at 149.77 yen as of 8:47 a.m. in Tokyo from 149.81 yesterday in New York.
An ichimoku chart analyzes the midpoints of historic highs and lows. The conversion line is the same calculation over the past nine trading days. The baseline on the ichimoku chart is the sum of the highest high and the lowest low over the past 26 trading days.
In technical analysis, investors and analysts study chart of trading patterns and prices to forecast price changes in a security, commodity, currency or index.
To contact the reporters on this story: Yasuhiko Seki in Tokyo at Yseki5@bloomberg.net; Kazumi Miura in Tokyo at kmiura@bloomberg.net
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