USD/JPY – 114.59
Original strategy :
Exit long entered at 114.70
Position : – Long at 114.70
Target : –
Stop : –
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Although the greenback recovered after finding support at 114.65, renewed selling interest emerged at 114.92 and dollar has fallen again today, suggesting near term downside risk remains for the fall from 115.51 top (last week’s high) to bring at least a retracement of recent upmove to 114.26 support but reckon downside would be limited to 114.00-05 (38.2% Fibonacci retracement of 111.69-115.51) and price should stay well above strong support at 113.56-61), bring rebound later.
In view of this, would be prudent to stand aside for now. Above the Kijun-Sen (now at 115.01) would suggest an intra-day low is formed, bring a stronger rebound to 115.25-30 but still reckon said resistance at 115.51 would cap upside. Only break there would revive bullishness and extend recent upmove to previous resistance at 115.62, then towards 115.90-00.
