USD/JPY – 111.06
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 111.12
Kijun-Sen level : 110.98
Ichimoku cloud top : 111.60
Ichimoku cloud bottom : 111.21
Original strategy :
Sell at 111.45, Target: 110.45, Stop: 111.80
Position : –
Target : –
Stop : –
New strategy :
Sell at 111.45, Target: 110.45, Stop: 111.80
Position : –
Target : –
Stop : –
Although the greenback has retreated after meeting resistance at 111.34, as long as yesterday’s low at 110.62 holds, further consolidation is in store and another bounce to 111.34 cannot be ruled out, however, reckon upside would be limited to previous support at 111.48 (now resistance) and bring another decline, below said support at 110.62 would signal the selloff from 114.50 top is still in progress and extend to 110.60 (61.8% projection of 114.50-111.55 measuring from 112.42), then 110.30-35 but loss of downward momentum should prevent sharp fall below latter level.
In view of this, would not chase this fall here and would be prudent to sell dollar on subsequent recovery. Above previous support at 111.48-55 would defer and suggest a temporary low is formed, bring retracement of recent decline to 111.75-80, then towards resistance at 112.08.
