Trade Idea Update: USD/JPY – Sell at 109.90

USD/JPY – 109.17

Original strategy  :

Sell at 109.90, Target: 108.90, Stop: 110.25

Position :  –

Target :  –

Stop : –

New strategy  :

Sell at 109.90, Target: 108.90, Stop: 110.25

Position :  –

Target :  –

Stop : –

The greenback has dropped again after brief recovery to 109.87, adding credence to our bearish view that recent entire decline from 118.66 top is still in progress, hence downside bias remains for recent selloff to extend further weakness to 108.40-50 (100% projection of 118.66-111.55 measuring from 115.51), however, loss of near term downward momentum should prevent sharp fall below 108.20-25 (1.618 times projection of 112.20-110.13 measuring from 111.58) and 108.00 should hold, bring rebound later.

In view of this, would not chase this fall here and would be prudent to sell dollar on recovery as said resistance at 109.87 should limit upside and bring another decline later. Above previous support at 110.13 would abort and suggest low is formed, bring a stronger rebound later to the upper Kumo (now at 110.45).