USD/JPY – 111.47
Original strategy :
Buy at 110.70, Target: 111.70, Stop: 110.35
Position :Â –
Target :Â –
Stop : –
New strategy :
Buy at 110.70, Target: 111.70, Stop: 110.35
Position :Â –
Target :Â –
Stop : –
The greenback surged after finding renewed buying interest at 109.59 and broke above previous resistance at 110.60, adding credence to our view that recent rise from 108.13 low is still in progress and bullishness remains for this move to bring at least a strong retracement of early downtrend, hence further gain to resistance at 111.75-80 would be seen, break would extend gain to 112.00, however, overbought condition should prevent sharp move beyond another previous resistance at 112.20.
In view of this, would not chase this rise here and would be prudent to buy dollar on subsequent pullback as previous resistance at 110.60 should limit downside, bring another rally. Below 110.30-35 (61.8% Fibonacci retracement of 109.59-111.51) would defer and suggest top is possibly formed, risk weakness to 109.80 but break of support at 109.59 is needed to provide confirmation.
