USD/JPY – 110.93
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 110.69
Kijun-Sen level : 110.88
Ichimoku cloud top : 110.93
Ichimoku cloud bottom : 110.89
Original strategy :
Sell at 111.10, Target: 110.10, Stop: 111.45
Position : –
Target : –
Stop : –
New strategy :
Sell at 111.30, Target: 110.30, Stop: 111.65
Position : –
Target : –
Stop : –
As the greenback has rebounded after holding above support at 110.27 (this week’s low), retaining our view that further consolidation would be seen and initial recovery to 111.20-30 cannot be ruled out, however, reckon resistance at 111.46 would cap upside and bring another decline later. Below said support at 110.27 would extend the fall from 112.20 to last week’s low at 110.11 but break there is needed to retain downside bias and confirm medium term decline has resumed for further subsequent fall to 109.80-85 (1.618 times projection of 112.20-111.12 measuring from 111.59) which is likely to hold on first testing.
In view of this, would not chase this fall here and would be prudent to sell dollar on recovery as 111.00-10 should limit upside. Only above 111.46 resistance would abort and prolong choppy trading, risk rebound to 111.59, then towards 111.90-00 later but price should falter well below said resistance at 112.20.
