USD/JPY – 110.54
Original strategy :
Sell at 110.75, Target: 109.75, Stop: 111.10
Position : –
Target : –
Stop : –
New strategy :
Sell at 110.90, Target: 109.90, Stop: 111.25
Position : –
Target : –
Stop : –
As the greenback has rebounded after falling to 110.00, suggesting consolidation above this level would be seen and corrective bounce to 110.77 (yesterday’s high) cannot be ruled out, however, reckon the upper Kumo (now at 111.01) would limit upside and bring another decline, below said support at 110.00 would extend recent decline from 114.50 to 109.75-80 but loss of downward momentum should limit downside to 109.50 and reckon 109.20-25 would hold.
In view of this, would not chase this fall here and would be prudent to sell dollar again on subsequent recovery as said resistance at 110.77 should limit upside. Above 111.10 (50% Fibonacci retracement of 112.20-110.00) would defer and risk test of 111.29 resistance but only break there would signal a temporary low is formed instead, bring rebound to 111.50-55 first.
