HomeTrade IdeasCandlesticks IntradayTrade Idea Update: USD/JPY - Sell at 109.55

Trade Idea Update: USD/JPY – Sell at 109.55

USD/JPY – 108.90

Original strategy  :

Sell at 109.55, Target: 108.55, Stop: 109.90

Position :  –

Target :  –

Stop : –

New strategy  :

Sell at 109.55, Target: 108.55, Stop: 109.90

Position :  –

Target :  –

Stop : –

Dollar’s rebound after falling to 108.45 yesterday suggests consolidation above this level would be seen and corrective bounce to 109.40 is likely, however, reckon upside would be limited to 109.55-60 (50% Fibonacci retracement of 110.67-108.45) and bring another decline, below said support at 108.45 would extend weakness towards last week’s low at 108.27 but break there is needed to retain bearishness and extend the fall from 114.50 to another previous chart support at 108.13, having said that, the greenback needs to penetrate this chart support to confirm early selloff from 118.66 has resumed for subsequent weakness to 107.70-75 which is likely to hold from here. 

In view of this, we are looking to sell dollar on further subsequent recovery as 109.55-60 should limit upside and bring another decline later. Above 109.82-83 (61.8% Fibonacci retracement of 110.67-108.45 and previous resistance) would abort and signal low is formed instead, bring a stronger rebound to 110.00-05 but price should falter well below resistance at 110.49.

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