The Australian dollar may fall to a three-month low against the yen after failing to hold above a key technical level, Gaitame.Com Research Institute Ltd. said, citing trading patterns. The so-called Aussie retreated from a two-month high after the upper Bollinger band limited its upward momentum on July 8, said Takuya Kawabata, a researcher at the unit of Japan’s largest foreign-exchange margin company in Tokyo. “The Bollinger band has capped the Aussie’s advance and pushed it lower,” Kawabata said. “The currency’s ascent seems to have peaked out for now.” The currency may drop to 84 yen, he said. That’s a support level that the currency failed to drop below in June. Australia’s dollar fetched 85.62 yen at 7:19 a.m. in Tokyo from 85.53 yen in New York yesterday, when it fell below the 20- day moving average. The currency reached 87.80 yen on July 8, the most since May 11. It last traded below 84 yen on March 29. Bollinger bands are designed to alert investors when a security rises too high or falls too low by comparing its price to the average level over the past 20 days. The system of analysis was created in the 1980s by John Bollinger. Support is a level where analysts anticipate orders to buy a currency. 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: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net; Kazumi Miura in Tokyo at Kmiura1@bloomberg.net. To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net.

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