USD/JPY – 113.77
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Despite yesterday’s rise to 114.24, the subsequent stronger-than-expected retreat suggests a temporary top has possibly been formed there and consolidation with mild downside bias is seen for test of 113.24-25 (previous support and 38.2% Fibonacci retracement of 111.65-114.24), break there would add credence to this view, bring further fall to 112.95-00 (50% Fibonacci retracement) but reckon downside would be limited to 112.60-65 (61.8% Fibonacci retracement) and support at 112.30 should remain intact.
On the upside, whilst recovery to 113.90-95 cannot be ruled out, said yesterday’s high at 114.24 should hold and bring another retreat later. Above this level would revive bullishness and extend recent rise from 107.32 low to 114.45-50 (50% projection of 111.65-114.10 measuring from 113.24), then towards 114.75-80 (61.8% projection). As near term outlook is mixed, would be prudent to stand aside in the meantime.
