USD/JPY – 112.18
Original strategy :
Sell at 112.80, Target: 111.80, Stop: 113.15
Position : –
Target : –
Stop : –
New strategy :
Sell at 112.80, Target: 111.80, Stop: 113.15
Position : –
Target : –
Stop : –
Although dollar rebounded after falling to 111.99 yesterday and initial upside risk is for recovery to 112.70-75 (50% Fibonacci retracement of 113.44-111.99), reckon 112.83-89 (yesterday’s high and 61.8% Fibonacci retracement) would limit upside and bring another decline later, below said support at 111.99 would add credence to our view that top has been formed at 113.44 and extend weakness to 111.75-80, then towards 111.47 support but oversold condition would limit downside and reckon 111.11 support would remain intact.
In view of this, we are looking to sell dollar on recovery as 112.83 resistance should limit upside and bring another decline. A break of indicated level at 112.83-89 would abort and signal low is formed, bring a stronger rebound to 113.10-20 but price should falter well below said last week’s high at 113.44.
