Trade Idea Wrap-up: USD/JPY – Buy at 110.00 or sell at 111.45

USD/JPY – 110.80

Most recent candlesticks pattern   : N/A

Trend                      : Near term up

Tenkan-Sen level              : 110.82

Kijun-Sen level                  : 110.67

Ichimoku cloud top             : 110.34

Ichimoku cloud bottom      : 109.79

Original strategy  :

Buy at 110.20, Target: 111.20, Stop: 109.85

Position :  –

Target :  –

Stop : –

New strategy  :

Buy at 110.00, Target: 111.00, Stop: 109.65

O.C.O.

Sell at 111.45, Target: 110.45, Stop: 111.80

Position :  –

Target :  –

Stop : –

As the greenback has risen again after brief pullback, adding credence to our bullish view that the rebound from 108.73 low is still in progress, hence gain to previous resistance at 111.05 cannot be ruled out, break there would extend this rise for a stronger correction of early decline to 111.45-50, having said that, loss of upward momentum should prevent sharp move beyond there and price should falter below previous resistance at 111.71, bring a strong retreat later.

In view of this, whilst we are still looking to buy dollar on pullback, we are inclined to sell dollar on subsequent rally. Below previous resistance at 109.80 would signal top is formed instead, bring weakness towards support at 109.42.