USD/JPY – 110.48
Original strategy :
Sold at 110.90, Target: 109.90, Stop: 111.00
Position : – Short at 110.90
Target : – 109.90
Stop : – 111.00
New strategy :
Hold short entered at 110.90, Target: 109.90, Stop: 111.00
Position : – Short at 110.90
Target : – 109.90
Stop : – 111.00
As the greenback rebounded after finding support at 110.28, suggesting further consolidation would be seen, however, as long as resistance at 110.98 (yesterday’s high) holds, bearishness remains for another retreat, below said support at 110.28 would suggest the rebound from 109.92 has ended, bring retest of this level later. A break there would confirm recent selloff from 114.50 top has resumed and extend weakness to 109.70–75 but loss of downward momentum should limit downside to 109.50.
In view of this, we are holding on to our short position entered at 110.90. Above 111.05-10 (50% Fibonacci retracement of 112.20-109.92) would defer and risk test of 111.29 resistance but only break there would signal a temporary low has been formed instead, bring rebound to 111.50-55 first.
