USD/JPY – 108.84
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 108.64
Kijun-Sen level : 108.74
Ichimoku cloud top : 108.90
Ichimoku cloud bottom : 108.68
Original strategy :
Bought at 108.45, Target: 109.45, Stop: 108.10
Position : – Long at 108.45
Target : – 109.45
Stop : – 108.10
New strategy :
Hold long entered at 108.45, Target: 109.45, Stop: 108.30
Position : – Long at 108.45
Target : – 109.45
Stop : – 108.30
Although the greenback slipped to 108.32 overnight, as dollar found renewed buying interest there and has staged a rebound, retaining our view that further consolidation above this week’s low at 108.13 would be seen and test of resistance at 109.22 is likely, break there would add credence to our view that a temporary low has been formed there, bring retracement of recent decline to 109.40-45 (previous resistance and 38.2% Fibonacci retracement of 111.58-108.13), 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.
In view of this, we are holding on to our long position entered at 108.45. Below 108.30-32 would risk retest of 108.13 support (this week’s low) but break there is needed to signal recent decline has resumed and extend weakness to 107.75-80 later.
