USD/JPY – 111.68
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 111.62
Kijun-Sen level : 112.15
Ichimoku cloud top : 112.88
Ichimoku cloud bottom : 112.54
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Although the greenback has remained under pressure after yesterday’s selloff and near term downside risk remains for recent decline from 115.51 to extend further weakness to 111.40 (50% projection of 115.20-112.26 measuring from 112.87), however, near term oversold condition should prevent sharp fall below 111.00-05 (61.8% projection) would hold, bring rebound later.
In view of this, would not chase this fall here and would be prudent to stand aside in the meantime. Above the Kijun-Sen (now at 112.15) would bring test of previous support at 112.26 but break there is needed to signal low is formed, then a stronger rebound to 112.65-70 would follow, however, only break of resistance at 112.87-90 would provide confirmation.
