Trade Idea Wrap-up: USD/JPY – Sell at 112.05

USD/JPY – 111.07

Most recent candlesticks pattern   : N/A

Trend                      : Near term down

Tenkan-Sen level              : 111.12

Kijun-Sen level                  : 111.14

Ichimoku cloud top             : 111.32

Ichimoku cloud bottom      : 111.03

Original strategy  :

Sell at 112.05, Target: 110.85, Stop: 112.40

Position :  –

Target :  –

Stop : –

New strategy  :

Sell at 112.05, Target: 110.85, Stop: 112.40

Position :  –

Target :  –

Stop : –

The greenback has remained confined within near term established range and further sideways trading within this familiar range would be seen and another corrective bounce to resistance at 111.74 is likely, however, reckon upside would be limited to 112.00-05 (50% Fibonacci retracement of 113.85-110.24) and bring another decline later, below 110.70-75 would suggest the rebound from 110.24 has ended, bring retest of this level first.

In view of this, would be prudent to sell dollar on further subsequent recovery as 112.05-10 should limit upside and bring another decline. Above 112.35-40 would defer and signal low is formed instead, risk a stronger rebound to 112.65-70.