The dollar may decline to a four- month low of 92.50 yen in two weeks after it fell below so- called support at 95.52 yen, Bank of Tokyo-Mitsubishi UFJ Ltd. said, citing trading patterns. Support at 95.52 yen represents the dollar’s low of June 17, according to Masashi Hashimoto, a senior analyst in Tokyo at the unit of Japan’s largest lender. The fact that the dollar stayed below its five-day moving average of 95.92 yen for a third day also indicates the greenback may extend losses versus the yen, Hashimoto said. Support is where buy orders may be clustered. “The dollar has weakened below the 200-day moving average of 96.14,” which signals it may keep falling, Hashimoto said. The next support will be its May 22 low of 93.86, he said. Should it fall below that level, the greenback may then weaken to around 92.50, he said. The dollar rose to 95.55 yen as of 7:28 a.m. in London from 95.22 yen in New York yesterday, when it reached 94.88 yen, the lowest level since June 1. The 92.50 yen level was last seen on Feb. 18. Daily momentum indicators such as the 14-day relative strength index and the moving average convergence/divergence chart also show sell signals for the dollar against the yen, Hashimoto said. The RSI is a technical gauge that compares the magnitude of gains and losses. 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. In technical analysis, investors and analysts study charts of trading patterns and prices to forecast price changes in a security, commodity, currency or index. Moving averages are used to identify trends and find support or resistance.

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