USD/JPY – 111.81
Original strategy :
Sold at 112.00, Target: 111.00, Stop: 112.35
Position : – Short at 112.00
Target : – 111.00
Stop : – 112.35
New strategy :
Hold short entered at 112.00, Target: 111.00, Stop: 112.35
Position : – Short at 112.00
Target : – 111.00
Stop : – 112.35
Although yesterday’s rally suggests near term rise from this week’s low at 110.62 may extend marginal gain from here, as this move is viewed as retracement of recent decline, reckon upside would be limited to 112.10 (50% Fibonacci retracement of 113.58-110.62) and bring another retreat later. Below previous resistance at 111.34 (now support) would suggest top is possibly formed but break of 111.10-15 is needed to add credence to this view, bring test of 110.80, break there would signal the rebound from 110.62 has ended, bring retest of this level first.
In view of this, we are holding on to our short position entered at 112.00. Above 112.08-10 would risk a stronger rebound to 112.42-45 (previous resistance and 61.8% Fibonacci retracement of 113.58-110.62) but only break there would signal recent decline has ended, bring headway towards resistance at 112.87 would follow.
