USD/JPY – 111.35
Original strategy :
Sold at 111.45, Target: 110.45, Stop: 111.80
Position : – Short at 111.45
Target : – 110.45
Stop : – 111.80
New strategy :
Exit short entered at 111.45 and
Sell at 111.75, Target: 110.75, Stop: 112.10
Position : – Short at 111.45
Target : –
Stop : –
Current rebound suggests near term upside risk has increased for the corrective bounce from 110.62 temporary low tho extend gain to 11.75 (38.2% Fibonacci retracement of 113.58-110.62), however, price should falter below 112.08-10 (previous resistance and 50% Fibonacci retracement) and bring another retreat later. Below 111.10-15 would suggest top is formed but break of 110.80 is needed to signal the rebound from 110.62 has ended, bring retest of this level first.
In view of this, would be prudent to exit short entered at 111.45 and sell again on further subsequent rebound. Above 112.08-10 would risk a stronger rebound to 112.42-45 (previous resistance and 61.8% Fibonacci retracement of 113.58-110.62) which is likely to hold on first testing.
