USD/JPY – 109.60
Most recent candlesticks pattern : N/A
Trend : Down
Tenkan-Sen level : 109.51
Kijun-Sen level : 109.99
Ichimoku cloud top : 111.01
Ichimoku cloud bottom : 110.76
Original strategy :
Sell at 110.00, Target: 109.00, Stop: 110.35
Position : –
Target : –
Stop : –
New strategy :
Sell at 110.20, Target: 109.20, Stop: 110.55
Position : –
Target : –
Stop : –
As the greenback met renewed selling interest at 110.73 yesterday and decline has accelerated after breaking below indicated support at 110.24, confirming our bearish view that recent decline from 114.37 top is still in progress and bearishness remains for further weakness to 109.00-05 (1.236 times projection of 111.71-110.31 measuring from 110.73), then towards 108.70-75 but near term oversold condition should limit downside to 108.45-50 (1.618 times projection), bring rebound later.
In view of this, would not chase this fall here and would be prudent to sell dollar on recovery as previous support at 110.24 should turn into resistance and cap dollar’s upside, bring another decline. Above 110.31 (another previous support) would defer but only break of said resistance at 110.73 would signal low is formed instead.
