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.

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