USD/JPY – 111.38
Original strategy :
Buy at 110.70, Target: 111.70, Stop: 110.35
Position : –
Target : –
Stop : –
New strategy :
Buy at 110.70, Target: 111.70, Stop: 110.35
Position : –
Target : –
Stop : –
Dollar’s retreat after rising to 111.88 yesterday has retrained our view that minor consolidation below this level would be seen and pullback to 111.00 cannot be ruled out, however, reckon 110.60-70 would limit downside and bring another rise later, above said resistance would extend recent upmove to 112.00, then 112.20 (previous resistance) but near term overbought condition should prevent sharp move beyond 112.40-45.
In view of this, would not chase this move here and would be prudent to buy dollar on subsequent pullback as 110.60-70 should limit downside. Below 110.45-50 would abort and signal a temporary top is formed instead, risk correction to 110.30, then towards 110.00 which is likely to hold from here.
