UPDATES ON JULY 8 2008

The dollar may strengthen to 108.58 yen, said Eiji Kinouchi, chief

technical analyst at Daiwa Institute of Research, citing charts

traders use to predict price movements.

The U.S. currency's 13-week moving average against the yen

last week rose above the 26-week moving average, a pattern

called a ``golden cross,'' which is a bullish signal, Tokyo- based

Kinouchi said. The 13-week moving average is currently at

104.89 yen and the 26-week moving average is at 104.64,

according to data compiled by Bloomberg. The target of

108.58 yen will match a four-month high the dollar set

on June 16.

The dollar traded at 107.14 yen as of 11:09 a.m. in Tokyo

from 107.18 yen in New York yesterday, when it rose to

107.75, the highest level since June 26.