The euro may keep rising against the yen after the 50-day moving average for the currency pair climbed through the 200-day moving average. The euro’s 50-day level, currently at 130.7993 yen, passed through its 200-day moving average of 130.7420 today. A moving average is a technical indicator that displays the average value of a security over a period of time. When a shorter-dated moving average rises through a longer-dated one it may signal more gains are in store. “The euro-yen story is tied up in one’s view of the green- shoots story, meaning whether one believes that the improvement in survey-based leading indicators will translate into a sustainable recovery,” said David Powell, a currency strategist in London at Bank of America-Merrill Lynch. Technical indicators “suggest some short-term gains. The euro-yen could also benefit from the euro-dollar rise.” The euro advanced 0.2 percent to 131.44 yen as of 7:51 a.m. in London and 0.5 percent to $1.3956. The Bank of Japan raised its view of the economy for the first time in almost three years today on signs that a record contraction in the first quarter represented the worst of the recession. “Economic conditions have been deteriorating, but exports and production are beginning to level out,” the bank said in a statement in Tokyo. Previously it said the world’s second- largest economy had “deteriorated significantly.” The last time the euro’s 50-day moving average rose through its 200-day level was on May 27, 2008. The single European currency closed that day 0.3 percent higher at 163.58 yen. It rose as high as 169.96 yen on July 23, 2008. “The crossover could be considered bullish for the euro- yen,” said Brian Dolan, chief currency strategist at Forex.com, a unit of online currency trading firm Gain Capital in Bedminster, New Jersey.

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