By Yasuhiko Seki and Hiroko Komiya June 18 (Bloomberg) -- The pound may extend gains versus Japan’s currency to reach a one-month high of 137 yen, Ueda Harlow Ltd. said, citing trading patterns. An ichimoku chart for the British currency shows bullish signals including a short-term conversion line crossing a longer-term baseline, said Toshiya Yamauchi, a senior analyst at the online currency-trading company in Tokyo. “In the short term, the pound is gaining technically driven momentum to head higher,” Yamauchi said in an interview. The pound traded at 134.56 yen as of 7:54 a.m. in Tokyo, having risen from its 2010 low of 126.77 touched on May 20. The currency’s conversion line stood at 133.20 yen, above the baseline of 131.60. An ichimoku chart is used to predict a currency’s direction through analyzing the midpoints of historical highs and lows. The conversion line plots the sum of the highest high and lowest low over the previous nine trading days. The baseline is the same calculation over the past 26 days. “The key is whether the pound can rise above this month’s high of near 136.40 yen, with a successful break through this level opening the way for the British currency to reach the bottom-line of the ichimoku cloud near 137 yen,” Yamauchi said. The pound hasn’t traded above 137 yen since May 14. The pound may struggle to extend its advance above the neckline of the mid-139 yen level, with “economic fundamentals continuing to support a decline in the currency from a long-term viewpoint,” he said. 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 reporter on this story: Yasuhiko Seki in Tokyo at Yseki5@bloomberg.net; Hiroko Komiya in Tokyo at Hkomiya1@bloomberg.net.

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