USD/JPY – 111.60
Original strategy :
Buy at 110.65, Target: 111.65, Stop: 110.30
Position : –
Target : –
Stop : –
New strategy :
Buy at 110.65, Target: 111.65, Stop: 110.30
Position : –
Target : –
Stop : –
Although the greenback has rebounded after finding support at 111.07 and test of yesterday’s high at 111.79 is likely, break there is needed to confirm the rise from 108.82 low has resumed and may extend headway to 111.90-95 (50% projection of 108.82-111.42-110.65) but upside should be limited to resistance at 112.13 and 112.25 (61.8% Fibonacci retracement of 114.37-108.82 and 61.8% projection) should hold from here. If said resistance continues to hold, then another retreat to 111.07 cannot be ruled out but 110.65 (previous support as well as 38.2% Fibonacci retracement of 108.82-111.79) would limit downside and bring another rise later.
In view of this, would not chase this rise here and we are looking to buy dollar on pullback as 110.65 support should limit downside. Below 110.30-35 (50% Fibonacci retracement of 108.82-111.79 and previous resistance turned support) would abort and signal a temporary top has been formed instead, risk weakness towards 109.95-00 (61.8% Fibonacci retracement).
