USD/JPY – 108.82
Original strategy :
Sell at 109.90, Target: 108.90, Stop: 110.25
O.C.O.
Buy at 108.60, Target: 109.60, Stop: 108.25
Position :Â –
Target :Â –
Stop : –
New strategy :
Sell at 109.90, Target: 108.90, Stop: 110.25
O.C.O.
Buy at 108.60, Target: 109.60, Stop: 108.25
Position :Â –
Target :Â –
Stop : –
Although the greenback extended recent decline to as low as 108.13 yesterday, the subsequent strong rebound suggests a temporary low has been formed there and consolidation with mild upside bias is seen for retracement of recent decline, hence gain to 109.40-45 (previous resistance and 38.2% Fibonacci retracement of 111.58-108.13) is likely, however, reckon upside would be limited to 109.86-87 (50% Fibonacci retracement and previous resistance) and price should falter below 110.25-30 (61.8% Fibonacci retracement), bring retreat later to 108.50-60 but price should stay above 108.30-35, bring another rebound.
In view of this, whilst we are looking to turn long on dips for such a rebound, we are inclined to sell dollar on subsequent bounce as 109.90-00 should limit upside, bring another decline. Below 108.30-35 would risk retest of 108.13 support (yesterday’s low) but break there is needed to signal recent decline has resumed and extend weakness to 107.75-80 later.
