USD/JPY – 110.72
Original strategy :
Sold at 110.90, Target: 109.90, Stop: 111.25
Position :Â – Short at 110.90
Target :Â – 109.90
Stop : – 111.25
New strategy :
Hold short entered at 110.90, Target: 109.90, Stop: 111.10
Position :Â – Short at 110.90
Target :Â – 109.90
Stop : – 111.10
Although the greenback has rebounded after marginal fall to 109.92 and consolidation above this level would be seen, reckon upside would be limited to 111.05-10 (50% Fibonacci retracement of 112.20-109.92) and bring retreat, below the lower Kumo (now at 110.32) would signal the rebound from 109.92 has ended, bring retest of this level, break there would confirm recent selloff from 114.50 top has resumed and extend weakness to 109.70–75 but loss of downward momentum should limit downside to 109.50.
In view of this, we are holding on to our short position entered at 110.90. Above 111.05-10 would defer and risk test of 111.29 resistance but only break there would signal a temporary low has been formed instead, bring rebound to 111.50-55 first.
