USD/JPY – 111.31
Most recent candlesticks pattern : N/A
Trend : Near term up
Tenkan-Sen level : 111.22
Kijun-Sen level : 111.32
Ichimoku cloud top : 111.28
Ichimoku cloud bottom : 110.88
Original strategy :
Buy at 110.45, Target: 111.55, Stop: 110.10
Position : –
Target : –
Stop : –
New strategy :
Buy at 110.45, Target: 111.55, Stop: 110.10
Position : –
Target : –
Stop : –
Dollar’s retreat after meeting resistance at 111.60 yesterday has retained our view that consolidation below this week’s high at 111.78 would be seen and pullback to 110.60-69 (previous resistance and 50% Fibonacci retracement of 109.59-111.78) cannot be ruled out, however, reckon downside would be limited and 110.40-45 (61.8% Fibonacci retracement) should hold, bring another rise later, above said resistance at 111.78 would signal recent rise from 108.13 low has resumed and extend further gain to 111.90-00 but 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 110.40-45 (61.8% Fibonacci retracement of 109.59-111.78) should limit downside. Only break of 110.05-10 (50% Fibonacci retracement of 108.32-111.78) 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.
