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Sterling's falls in the East

Sterling's four-month long recovery against the Japanese yen may have ended, says Ragu Dharmaratnam of Baselica.

Both sterling/yen's 21- and 55-day moving averages are pointing downwards, while the price is also below its Ichimoku cloud, a Japanese variety of moving average. Once the rate breaks below 124, a drop to 122 and 117 may follow.

City Trades are written by selected external contributors and are based on the interpretation of patterns on a share price chart, rather than on fundamental analysis of the company's business or prospects.

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By Ragu Dharmaratnam,
30 May 2012

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