FxWirePro Call review: Maintain short positions in USD/JPY; interim target added

We have been short on USD/JPY for quite some time now. Back in May this year, in an article named, “FxWirePro: Buy yen at dips targeting 101 per dollar”, available at http://www.econotimes.com/FxWirePro-Buy-yen-at-dips-targeting-101-per-dollar-674020 , we suggested buying yen against the dollar, with a target around 101 per dollar. Here is the recommendation from that article, “We recommend buying the yen at dips against the dollar with a target around 101 per dollar. Proffered buying areas are here at 112 (10 percent of the total intended position), then at 114 (20 percent of the total intended position), then at 115 (60 percent of the total intended position) and finally at 116.5 (10 percent of the total intended position). We would recommend stop loss after entering fully into the trade.”

In a subsequent article, named, “FxWirePro Call Review: Maintain USD/JPY short; stop loss recommended”, available at http://www.econotimes.com/FxWirePro-Call-Review-Maintain-USD-JPY-short-stop-loss-recommended-729744 , we noted,

“The yen weakened to as low as 114.3 per dollar before strengthening again. As per our guideline, our readers couldn’t have entered the entire desired positions.  We recommended at this point maintaining the entered positions and add fresh positions at breakouts. An addition of fresh short positions is recommended one the pair break below 110. As of now, we would like to recommend a bigger stop loss around 115.5 per dollar.”

In this article, we would like to reaffirm our bullish view on yen and would like to recommend an interim target around 103.7 per dollar. We would also like to revise the stop loss by 100 pips to 114.5 per dollar. The yen is currently trading at 110.1 per dollar.

It is quite visible from the chart that a breakout of the downtrend line has clearly failed.