USD/JPY – 77.18

New Strategy  :   

Buy at 76.50, Target: 77.50, Stop: 76.15

Position: -
Target:  -
Stop:-

The greenback has maintained a firm undertone after our anticipated rally, this move adds credence to our view that low has been formed last week at 76.03 and bullishness remains for a stronger retracement of the intermediate decline from 78.29 to 77.40-45 (61.8% Fibonacci retracement of 78.29-76.03) but reckon upside would be limited to 77.75-80 and price should falter well below strong resistance at 78.29.

In view of this, we are looking to buy dollar again on pullback as the Ichimoku cloud bottom (now at 76.48) should limit downside. Only below said support at 76.03 would abort and extend recent fall to 75.80/85, however, still reckon downside would be limited to 75.50 and the record low of 75.31 should remain intact, bring another rebound later.