USD/JPY – 109.43
Original strategy :
Sell at 109.90, Target: 108.90, Stop: 110.25
Position : –
Target : –
Stop : –
New strategy :
Sell at 110.20, Target: 109.20, Stop: 110.55
Position : –
Target : –
Stop : –
As the greenback has fallen again after brief recovery, suggesting recent decline from 114.37 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 (now resistance) should limit upside and bring another decline. Above previous support at 110.31 would defer and suggest low is formed instead, bring a stronger rebound to 110.60 but break of resistance at 110.73 is needed to add credence to this view.
