USD/JPY – 113.39
Most recent candlesticks pattern : N/A
Trend : Near term up
Tenkan-Sen level : 113.30
Kijun-Sen level : 113.52
Ichimoku cloud top : 113.92
Ichimoku cloud bottom : 113.83
New strategy :
Buy at 112.70, Target: 113.80, Stop: 112.35
Position : –
Target : –
Stop : –
As the greenback dropped last Friday’s on dollar’s broad-based weakness, suggesting temporary top has been formed at 114.37 last week and near term downside risk remains for a stronger correction of recent rise to 113.00-05, however, 112.60-65 (50% Fibonacci retracement of 110.87-114.37) should limit downside and bring rebound later, above 113.60-65 would bring test of 114.00-05 but break of latter level is needed to signal the pullback from 114.37 has ended, bring retest of this level later.
In view of this, we are inclined to buy dollar on next decline but one should exit on such rebound as 114.37 resistance should cap upside. Below support at 112.39 would risk further weakness to 112.20-25 (61.8% Fibonacci retracement of 110.87-114.37) but still reckon previous support at 112.09 would hold from here.
