“Traders may not want large positions on concerns about the spring-equinox jinx,” said Yuji Saito, director of the foreign-exchange department in Tokyo at Credit Agricole. “They’re worried there’ll be turbulence again this year.”
In 2008, the dollar on March 17 dropped more than 3 yen to a 14-year low of 95.76 yen as traders cut positions before the holiday on March 20. Last year, the greenback slid almost 3 yen on March 19, the day preceding the break.
“There are a lot of bombshells this year, such as the Greek rescue problem and China’s monetary tightening,” Saito said. The so-called ichimoku chart shows “there could be a market reversal,” he said.
The chart is showing a “twisted” cloud pattern, indicating the dollar is vulnerable, Saito said. The chart analyzes the midpoints of historic highs and lows.
The greenback dropped 0.04 percent this week to 90.52 yen as of 7:40 a.m. in London. It slid to as low as 89.76 yen yesterday, the weakest level since March 9.
