USD/JPY – 110.55
Most recent candlesticks pattern : N/A
Trend : Near term down
Tenkan-Sen level : 110.66
Kijun-Sen level : 110.96
Ichimoku cloud top : 111.08
Ichimoku cloud bottom : 110.86
Original strategy :
Bought at 110.60, Target: 111.60, Stop: 110.25
Position : – Long at 110.60
Target : – 111.60
Stop : – 110.25
New strategy :
Hold long entered at 110.60, Target: 111.60, Stop: 110.25
Position : – Long at 110.60
Target : – 111.60
Stop : – 110.25
Although dollar has remained under pressure after retreating sharp from yesterday’s high of 111.58 and marginal weakness from here cannot be ruled out, reckon 110.25-30 would contain downside and bring another rebound later, above 111.10-15 would suggest the retreat from 111.58 has ended, bring test of 111.58-59 resistance, break there would add credence to our view that further consolidation above recent low at 110.11 would be seen and signal the fall from 112.20 has ended, then a stronger rebound to 111.90-00 would follow but said resistance at 112.20 should hold and choppy trading within 110.11-112.20 would continue.
In view of this, we are holding on to our long position entered at 110.60 but one should exit on such rebound. Below 110.25-30 would risk test of said support at 110.11-13 but only break there would 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), however, price should hold above 109.50-55 (100% projection of 112.20-110.27 measuring from 111.46).
