Trade Idea Update: USD/JPY – Stand aside

USD/JPY – 111.32

New strategy  :

Stand aside

Position :  –

Target :  –

Stop : –

Current breach of indicated resistance at 111.23-24 signals low has indeed been formed at 110.48 and near term upside risk remains for a strong retracement of the fall from 112.13, hence gain to 111.47-50 (another previous resistance and 61.8% Fibonacci retracement of 112.13-110.48), then 111.70 is likely, however, as broad outlook remains consolidative, reckon upside would be limited and resistance at 111.95 should hold from here. 

On the downside, whilst pullback to 111.00-05 cannot be ruled out, reckon downside would be limited to 110.80 and said support at 110.48 should remain intact, bring another rebound later. Only a break below 110.48 would extend recent decline to another previous support at 110.24, below there would bring subsequent selloff to 110.00 which is likely to hold on first testing. As near term outlook is mixed, would be prudent to stand aside in the meantime.