The dollar may fall below a post- World War II record against the yen, Mizuho Corporate Bank Ltd. said, citing trading patterns. The ichimoku chart, used to predict a currency’s direction by analyzing the midpoints of historical highs and lows, shows the dollar may weaken past 75 yen, said Hiroyuki Tanaka, chief technical analyst at Mizuho in Tokyo. The U.S. dollar declined to a record low of 76.25 yen on March 17. It traded at 76.86 yen as of 1:08 p.m. in Tokyo from 76.83 yen yesterday in New York. The chart’s so-called baseline fell to 78.34 today from 78.89 on Aug. 12, according to data compiled by Bloomberg. The conversion line will start to drop this week after Japan’s intervention to sell its own currency spurred the dollar to a three-week high of 80.24 yen on Aug. 4, Tanaka said. “The falling base and conversion lines will put downward pressure” on the dollar against the yen, said Tanaka, whose company is a unit of Japan’s third-biggest publicly traded bank by market value. “The fact that the dollar is in range-bound trading near a record low is already a sign of weakness.” The conversion line plots the daily average of highs and lows in the preceding nine trading days, while the baseline is the same calculation over the past 26 days, according to the website of Nomura Securities Co. 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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