Dec. 14 (Bloomberg) -- The dollar's 1.1 percent advance against the yen this month may stall at 114.42, said George Davis, chief technical analyst at RBC Capital Markets, a unit of Canada's biggest bank in Toronto.
The daily stochastic oscillator chart shows the U.S. currency's gains are excessive, said Davis in a research note yesterday. The dollar's 14-day stochastic oscillator was 96 today, according to data compiled by Bloomberg. A level above 80 suggests the currency has climbed too fast.
``We note that the daily studies are locked at overbought extremes,'' Davis said. Stochastic oscillator charts measure the price of a security relative to its highs and lows during a particular period to try to predict a rise or fall.
The dollar traded at 112.45 yen as of 12:28 p.m. in Tokyo from 112.21 yen late in New York yesterday. It has fallen 5.5 percent versus the yen this year.
read more:Dollar's Rise May Stall at 114.42 Yen, RBC Capital Markets Says
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