USD/JPY – 111.90
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 111.85
Kijun-Sen level : 111.73
Ichimoku cloud top : 111.17
Ichimoku cloud bottom : 111.12
Original strategy :
Sold at 112.00, Target: 111.00, Stop: 112.35
Position : – Short at 112.00
Target : – 111.00
Stop : – 112.35
New strategy :
Exit short entered at 112.00
Position : – Short at 112.00
Target : –
Stop : –
As the greenback has maintained a firm undertone, suggesting near term upside risk remains for the rise from 110.62 (this week’s low) to extend gain to 112.08-10 (previous resistance and 50% Fibonacci retracement of 113.58-110.62), break there would bring headway towards 112.42-45 (previous resistance and 61.8% Fibonacci retracement), however, reckon upside would be limited and price should falter well below resistance at 112.87, bring retreat later.
In view of this, would be prudent to exit short and look to sell dollar again on subsequent rally. Below 111.55-60 would suggest top is possibly formed but break of previous resistance at 111.34 (now support) is needed to add credence to this view, bring weakness to 111.10-15, below there would suggest the rebound from 110.62 has ended, bring test of 110.83 support first.
