The dollar may fall back toward the postwar record low it reached against the yen in March, according to Mizuho Corporate Bank Ltd., citing chart patterns. The U.S. currency has traded below its conversion line on an ichimoku chart on most days since April 13 and yesterday fell below the measure’s so-called cloud. The first leading-span line, or the top of the cloud, was at 81.60 yen and will rise to 83.03 yen in the coming weeks, while the second leading-span line remains below 81 yen. “As the cloud is gradually thickening, the dollar is more likely to decline if it fails to rebound above the cloud today or tomorrow,” said Hiroyuki Tanaka, chief technical analyst at the unit of Japan’s third-largest bank by market value. “The final target for the dollar is 76.25." The dollar fell to 79.57 yen yesterday, the lowest since Group of Seven nations intervened on March 18 to reverse gains in Japan’s currency to a postwar record of 76.25 yen the day before. The U.S. currency climbed 0.5 percent to 80.48 yen as of 2:17 p.m. in Tokyo. Ichimoku charts are used to predict a currency’s direction by analyzing the midpoints of historical highs and lows. The conversion line plots the sum of the highest high and lowest low in the preceding nine trading days. The cloud refers to the area between the first and second leading-span lines on the chart and is used to show an area where buy orders may be clustered. In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index. To contact the reporters on this story: Hiroko Komiya in Tokyo at hkomiya1@bloomberg.net; Masaki Kondo in Singapore at mkondo3@bloomberg.net. To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net.

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