USD/JPY – 111.40
Original strategy :
Buy at 110.65, Target: 111.65, Stop: 110.30
Position : –
Target : –
Stop : –
New strategy :
Buy at 110.65, Target: 111.65, Stop: 110.30
Position : –
Target : –
Stop : –
Although the greenback rebounded after finding support at 110.95 last week and gain towards resistance at 111.79 (last week’s high) cannot be ruled out, break there is needed to signal recent upmove has resumed and extend headway to 111.90-95 (50% projection of 108.82-111.42-110.65), however, upside should be limited to resistance at 112.13 and 112.25 (61.8% Fibonacci retracement of 114.37-108.82 and 61.8% projection) should hold. If said resistance at 111.79 continues to hold, then further consolidation would take place and another retreat to 110.95 cannot be ruled out, however, previous support at 110.65 would limit downside and bring another rise later.
In view of this, would not chase this rise here and we are looking to buy dollar on pullback as 110.65 support should limit downside. Below 110.30-35 (50% Fibonacci retracement of 108.82-111.79 and previous resistance turned support) would abort and signal a temporary top has been formed instead, risk weakness towards 109.95-00 (61.8% Fibonacci retracement).
