The yen is poised to
weaken toward a seven-year low versus the dollar, trading patterns
suggest, amid prospects that a strengthening U.S. economy will allow the
Federal Reserve to raise interest rates this year.
The bias is for
further yen declines, according to JPMorgan Chase & Co. and IG
Markets Securities Ltd., after the dollar-yen exchange rate closed above
its 21-day moving average for the first time in a month on Feb. 6, when
Labor Department data showed the biggest three-month rise in U.S.
payrolls for 17 years.
Analysts point to a
re-test of the 119 level for the pair this week, the upper boundary of a
triangle pattern formed from the dollar™s multi-year high of 121.85 yen
reached on Dec. 8. The two currencies rose to 119.22 on Feb. 6, before
retreating to 118.48 as of 1:16 p.m. in Tokyo.
U.S. data due later
this week, including January retail sales, will be important in
determining the direction of dollar-yen, Ishikawa said. Consumers
probably cut spending by 0.5 percent last month compared to December,
when sales fell 0.9 percent, according to the median estimate of
economists surveyed by Bloomberg News before the Feb. 12 report.
Source : Bloomberg
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