USD/JPY – 109.72
Original strategy :
Exit long entered at 110.00
Position : – Long at 110.00
Target : –
Stop : –
New strategy :
Buy at 109.25, Target: 110.25, Stop: 108.90
Position : –
Target : –
Stop : –
As the greenback found renewed buying interest at 108.84 yesterday and staged another rebound, suggesting a test of resistance at 109.83 (this week’s high) would be seen, break there would signal low has been formed at 108.60 earlier, bring further gain to 110.00 and later towards previous resistance at 110.37 which is likely to hold on first testing due to near term overbought condition.
In view of this, we are looking to buy dollar on dips as 109.20-25 should limit downside. Only below said support at 108.84 would abort and bring retest of said support at 108.60, break there would revive bearishness and confirm recent decline has resumed for further weakness to 108.30 (1.618 times projection of 110.95-109.67 measuring from 110.37), then towards 108.00.
