USD/JPY – 87.52

New Strategy   :   

Stand aside

Although dollar has continued to move lower after retreating from 88.22 and weakness to 87.20 cannot be ruled out, break of yesterday’s low at 86.96 is needed to signal recent decline has once again resumed and extend weakness to 86.50, however, loss of downward momentum should prevent sharp fall below 86.00 and risk remains for another rebound later.

On the upside, above said resistance would bring a stronger retracement of recent decline to the Ichimoku cloud top (now at 88.51), then towards 88.69-77 (38.2% Fibonacci retracement of 91.48 to 86.96 and previous resistance), however, break there is needed to retain bullishness and bring correction towards 89.20/25 (50% Fibonacci retracement).

As near term outlook is mixed, stand aside in the meantime.