Technical analysis suggests that the euro could fall to a three-month low against the yen. Both the Stochastic Oscillator and the Moving Average Convergence / Divergence (MACD) indicators point to a lower euro which traded at 133.55 yen as of 8:54 a.m. in Tokyo, from 133.32 yen yesterday in New York. It reached 129.05 yen on Oct. 2, the lowest level since July 13, when the single currency reached 128.01.
“The key to ascertaining the trend for the following months is whether the euro can recover to 134 yen,” Hashimoto said. “A failure to reach the level may create opportunities for further declines, possibly pushing the currency toward the 52-week moving average or the bottom line of Bollinger bands.”
