USD/JPY – 109.55
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 109.63
Kijun-Sen level : 109.86
Ichimoku cloud top : 110.86
Ichimoku cloud bottom : 110.64
Original strategy :
Sell at 110.30, Target: 109.30, Stop: 110.65
Position : –
Target : –
Stop : –
New strategy :
Sell at 110.30, Target: 109.30, Stop: 110.65
Position : –
Target : –
Stop : –
Yesterday’s selloff below support at 110.11 on active cross-buying in yen in part due to risk aversion suggests recent entire decline 118.66 top is still in progress, hence downside bias remains for recent decline to extend weakness to 109.30-35, then towards 109.00-05 (123.6 times projection of 112.20-110.13 measuring from 111.58), however, near term oversold condition should prevent sharp fall below 108.85 (61.8% projection of 115.51-110.11 measuring from 112.20) and reckon 108.40-50 (100% projection of 118.66-111.55 measuring from 115.51) would hold, bring rebound later.
In view of this, would not chase this fall here and would be prudent to sell dollar on recovery as 110.30-40 should cap upside and bring another decline. Above 110.70-75 would defer and risk a stronger rebound to 111.00-05 but price should falter well below resistance at 111.58.
