Mapping the Market: 'Death cross' bodes more trouble for peso against resurgent yen

By Robert Fullem NEW YORK, Oct 13 (Reuters) — The Mexican peso has been sliding against the Japanese yen since September — hurt by bond-market turmoil that has lifted interest rates around the world — and the decline may not be over, technical analysis suggests. Click here for a detailed technical analysis chart. Technical analysis uses past price moves on charts to help understand where a market might go next. The peso's exchange rate against the yen is usually quoted as the number of yen one peso buys. So a falling line on the chart means the Mexican currency is weakening. The first warning came on September 1, when the peso peaked at 9.4441 yen. That was just short of its May 2024 high of 9.4532. Two peaks at about the same level form what chart watchers call a double top. Analysts see this as bearish, meaning it points to lower prices. Now a more serious signal is forming. Analysts use moving averages, which track the average price over a set number of days, to smooth out daily swings and show the underlying trend. The peso's 50-day moving average, which reflects recent moves, is about to drop below its 200-day moving average, which reflects the longer-term picture. This crosso