USD/JPY – 112.68
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Although the greenback opened higher earlier today, as dollar has retreated after faltering below last week’s high at 113.05, suggesting further consolidation below this level would be seen and pullback t 112.40 cannot be ruled out, however, reckon support at 112.09 would limit downside and bring another rise later. Above said resistance at 113.05 would confirm recent upmove has resumed and extend gain to 113.10-15 (61.8% projection of 108.13-111.78 measuring from 110.87) and 113.30 but reckon upside would be limited to previous resistance at 113.54 and price should falter well below 113.90-00.
In view of this, would not chase this rise here and would be prudent to stand aside for now. Below 112.09 support would bring test of 111.96 but break of this level is needed to signal a temporary top has been formed at 113.05, bring correction to 111.73-78 (38.2% Fibonacci retracement of 109.59-113.05 and previous resistance), however, reckon 111.21-32 (previous support and 50% Fibonacci retracement) would contain weakness.
