USD/JPY – 109.77
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Despite falling to 109.54 yesterday, the subsequent rebound suggests consolidation above this level would be seen and test of previous support at 110.25 cannot be ruled out, however, break there is needed to signal low has been formed there, bring a stronger rebound to 110.55-60 but reckon upside would be limited to resistance t 110.83 and price should falter below 111.05 (last week’s high).
On the downside, below said support at 109.54 would signal recent decline has resumed and extend weakness to 109.20-25, having said that, loss of near term downward momentum should prevent sharp fall below there and price should stay above 109.00. As near term outlook is mixed, would be prudent to stand aside for now.
