The euro may fall to a minimum of four months against the yen

The euro may fall to a minimum of four months against the yen should fall below key support levels established in the last month, said Tsutomu Soma, a provider of bond and currency of Okasan Securities Co.

Support at 108.35 yen weakest marks the euro on Nov. 30, and the level of 108.49 yen represents a trend line connecting the lows of August 24, 1908 September and 23 December. Daily momentum indicators such as Moving Average Convergence Divergence, or MACD, also show that the euro is likely to weaken against the yen, Soma said.

"The euro is very bad against the yen in the lists, " said Tokyo-based Soma in an interview. "The trend is downward, with a clear break below 108.35 yen target the August low 105.44 yen."

The European currency rose to 109.04 yen at 9:53 am in Tokyo from 108.74 yen in New York yesterday, when it fell to 108.46 yen, at least from 1 December. The level of 105.44 yen reached on 24 August was the weakest since July 2001. The euro has fallen 18 percent against the Japanese currency this year, set for biggest loss since 2008.

MACD of the euro against the yen today was less than 0.7102, below the signal line of less than 0.5405. The MACD is calculated by subtracting the 26-day exponential moving average of the mean of 12 days. The signal line is a nine-day exponential moving average of the MACD, and provides signals for buying and selling of some analysts.

In technical analysis, investors and analysts charts on trading patterns and prices to forecast changes in the security, commodity, currency or index. Support is on purchase orders can be grouped while resistance refers to a level where sell orders may be.