USD/JPY – 110.10
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 110.34
Kijun-Sen level : 110.39
Ichimoku cloud top : 110.61
Ichimoku cloud bottom : 110.45
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 :
Exit short entered at 110.90
Position : – Short at 110.90
Target : –
Stop : –
Although the greenback has dropped again in NY morning, break of this week’s low at 109.92 is needed to confirm recent decline has resumed and extend recent selloff from 114.50 top to 109.70–75 but loss of downward momentum should limit downside to 109.50, risk from there has increased for a rebound to take place later.
In view of this, would be prudent to exit short entered at 110.90 and look to sell again on recovery as 110.50 would limit upside. Above 110.70 would bring another bounce to 110.98 resistance but break of 111.05-10 (50% Fibonacci retracement of 112.20-109.92) is needed to signal a temporary low is formed, bring test of 111.29 resistance first.
