USD/JPY – 110.57
Original strategy :
Sell at 110.95, Target: 109.95, Stop: 111.30
Position :Â –
Target :Â –
Stop : –
New strategy :
Sell at 110.95, Target: 109.95, Stop: 111.30
Position :Â –
Target :Â –
Stop : –
As the greenback has dropped again after meeting renewed selling interest at 111.59 yesterday, adding credence to our view that top ha been formed at 112.20 and bearishness remains for the selloff from there to extend weakness to 110.11 support, however, break there is needed to retain downside bias and confirm medium term decline has resumed for further subsequent fall to 109.80-85 (1.618 times projection of 112.20-111.12 measuring from 111.59) which is likely to hold on first testing.
In view of this, would not chase this fall here and would be prudent to sell dollar on recovery as 110.90-95 should limit upside. Above previous support at 111.12 (now resistance) would defer but only break of resistance at 111.59 would abort and signal the fall from 112.20 has ended instead.