USD/JPY – 110.01
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 110.03
Kijun-Sen level : 110.29
Ichimoku cloud top : 110.70
Ichimoku cloud bottom : 110.53
Original strategy :
Bought at 110.30, stopped at 110.25
Position : – Long at 110.30
Target : –
Stop : – 110.25
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Despite yesterday’s brief bounce to 110.83, the subsequent selloff dampened our near term bullishness and the breach of previous support at 109.85 signals recent decline has resumed, hence downside risk remains for weakness to 109.70, then 109.50, however, loss of near term downward momentum should prevent sharp fall below 109.20-25 and price should stay above 109.00.
In view of this, would not chase this fall here and would be prudent to stand aside for now. Above the Kijun-Sen (now at 110.29) would suggest an intra-day low is possibly formed, bring rebound to 110.55-60 but break there is needed to add credence to this view, then test of 110.83 and later 111.05 would follow.
