Salient to Investors:
Daisuke Uno at Sumitomo Mitsui Financial said the charts predict a fall in the euro to a 12-year low against the yen next month. On the weekly ichimoku chart, the conversion line remains below the base line; the spot price is below the cloud; and the lag line is below the spot prices.
Ichimoku charts predict a currency’s direction by analyzing the midpoints of historical highs and lows.
- The baseline is the sum of the highest high and the lowest low over the past 26 trading days.
- The conversion line is the same calculation over the past nine trading days
- The lag line is the most recent closing price plotted 26 days behind the current level.
- The cloud refers to the area between the first and second leading span lines on the chart and is used to show an area where trading orders may be clustered.