USD/JPY – 108.79
Original strategy :
Sell at 108.90, Target: 107.70, Stop: 109.25
Position : –
Target : –
Stop : –
New strategy :
Sell at 109.35, Target: 108.35, Stop: 109.70
Position : –
Target : –
Stop : –
As the greenback opened higher today and has edged higher, suggesting near term upside risk remains for the rebound from last week’s low of 107.32 to extend gain to 109.00 (50% Fibonacci retracement of 110.67-107.32), however, still reckon upside would be limited to 109.39-40 (61.8% Fibonacci retracement and previous resistance) and bring retreat later, below the Kijun-Sen (now at 108.07) would suggest the rebound from 107.32 has possibly ended but break of 107.60-65 is needed to confirm and bring retest of 107.32.
In view of this, we are still looking to sell dollar on further recovery as 109.35-40 should limit upside, bring retreat later. Above 109.55 would defer and signal low has been formed, bring a stronger rebound towards resistance at 108.93 which is likely to hold from here due to near term overbought condition.
