USD/JPY – 110.03
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Although the greenback slipped to 109.63 yesterday, dollar needs to penetrate previous support at 109.38 to signal the rebound from last week’s low of 109.11 has ended at 110.81 and bring retest of this level. A drop below there would confirm recent decline has resumed for further fall to 109.00, then 108.75-80, however, near term oversold condition would limit downside and reckon 108.50 would hold.
If said support at 109.38 continues to hold, then further consolidation is in store and another bounce to 110.35-40 cannot be ruled out, however, upside should be limited to 110.60 and price should falter below 110.81. Only break of this resistance would signal the erratic rise from 109.11 low is still in progress for further gain to 111.00 and possibly 111.20-30 but price should falter well below resistance at 111.71, bring retreat later. As near term outlook is mixed, would be prudent to stand aside in the meantime.
