The yen may rise to a 13 1/2-year high of 85 versus the dollar provided it appreciates beyond 87.13, said Masashi Hashimoto, currency analyst at Bank of Tokyo-Mitsubishi UFJ Ltd. in Tokyo. Resistance at 85 is near a 123.6 percent projection of the yen’s advance from its Jan. 6 low of 94.63 to its Jan. 21 high of 87.13, according to a series of numbers known as the Fibonacci sequence. The yen may advance as its four-week moving average, relative strength index and moving average convergence/divergence on its weekly price chart show further gains are likely, he said. “My original scenario was for the yen to weaken to 100 per dollar,” said Hashimoto of Bank of Tokyo-Mitsubishi UFJ, a unit of Japan’s largest publicly listed lender. “The charts now show this scenario is in doubt.” The yen traded at 89.18 per dollar as of 11:18 a.m. in Tokyo from 89.10 late yesterday in New York. Japan’s currency has risen 1.6 percent versus the greenback this month. The 14-day relative strength index, a comparison of the magnitude of gains and losses, can be used to show whether a trend has gone too far. MACD charts can indicate whether a price shift is a change in trend or a short-term deviation by comparing moving averages based on nine-, 12- and 26-day periods. Fibonacci projections use past prices to determine potential moves in the future. Other levels are 138.2 percent, 150 percent and 161.8 percent. In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index.

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