USD/JPY – 111.45
Original strategy :
Buy at 111.25, Target: 112.25, Stop: 110.90
Position :Â –
Target :Â –
Stop : –
New strategy :
Buy at 111.10, Target: 112.10, Stop: 110.75
Position :Â –
Target :Â –
Stop : –
As the greenback has maintained a firm undertone after breaking above previous resistance at 111.42, adding credence to our bullish view that the rise from 108.82 low is still in progress for retracement of recent decline from 114.37, hence further gain to 111.90-95 (50% projection of 108.82-111.42-110.65) would be seen, however, overbought condition should prevent sharp move beyond resistance at 112.13 and 112.25 (61.8% Fibonacci retracement of 114.37-108.82 and 61.8% projection) should hold on first testing, price should falter below 112.50.
In view of this, we are looking to buy dollar on pullback as 111.00-05 should limit downside. Below 110.85-90 would defer and suggest a temporary top is formed instead, risk retreat towards previous support at 110.65 but reckon previous resistance at 110.35 would turn into support and contain downside.
