Dollar Capped by Ichimoku May Hit 1995 Low

The dollar remains in a downtrend against the yen and may weaken to the lowest level since 1995, according to Mizuho Corporate Bank Ltd., citing technical charts.

The dollar rate is still within the so-called cloud of a weekly ichimoku chart, indicating the greenback’s downward trajectory that started in 2007 is still intact, said Hiroyuki Tanaka chief technical analyst at Mizuho Corporate Bank in Tokyo.

“The cloud’s baseline is at 89.94 yen this week,” Tanaka said in an interview. “Should the dollar dip and stay below 90 yen this week, it may extend losses.”

Falling below the baseline means the dollar will go below the cloud of the ichimoku chart and gain downward momentum, according to Tanaka.