USD/JPY – 109.33
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 109.12
Kijun-Sen level : 108.99
Ichimoku cloud top : 109.49
Ichimoku cloud bottom : 109.20
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Despite yesterday’s all to 108.63, the subsequent rebound after holding above indicated support at 108.60 has retained our view that further consolidation would take place and another test of resistance at 109.60-67 cannot be ruled out, however, a firm break above there is needed to signal low has been formed at 108.60, bring a stronger rebound to 110.00 and later towards resistance at 110.37 which is likely to hold from here.
On the downside, below 108.80 would bring retest of 108.60 but only break there would signal recent decline has resumed and may extend further weakness to 108.30 (1.618 times projection of 110.95-109.67 measuring from 110.37), then towards 108.10-15 (61.8% projection of 110.95-108.60 measuring from 109.60), however, loss of downward momentum should prevent sharp fall below latter level and reckon 108.00 would hold from here, bring rebound later. As near term outlook is mixed, would be prudent to stand aside for now, then look to sell dollar on subsequent rebound.
