USD/JPY – 108.90
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 108.90
Kijun-Sen level : 108.92
Ichimoku cloud top : 108.68
Ichimoku cloud bottom : 108.65
Original strategy :
Bought at 108.45, Target: 109.45, Stop: 108.30
Position : – Long at 108.45
Target : – 109.45
Stop : – 108.30
New strategy :
Hold long entered at 108.45, Target: 109.45, Stop: 108.30
Position : – Long at 108.45
Target : – 109.45
Stop : – 108.30
As dollar has eased after faltering below indicated resistance at 109.22, suggesting further consolidation would take place, however, reckon downside would be limited to 108.45-50 and bring another bounce to said resistance, break there would add credence to our view that a temporary low has been formed at 108.13, bring retracement of recent decline to 109.40-45 (previous resistance and 38.2% Fibonacci retracement of 111.58-108.13) but reckon upside would be limited to 109.86-87 (50% Fibonacci retracement and previous resistance) and price should falter below 110.25-30 (61.8% Fibonacci retracement), bring retreat later.
In view of this, we are holding on to our long position entered at 108.45. Below 108.30-32 would risk retest of 108.13 support (this week’s low) but break there is needed to signal recent decline has resumed and extend weakness to 107.75-80 later.
