Trade Idea Wrap-up: USD/JPY – Stand aside

USD/JPY – 109.50

Most recent candlesticks pattern   : N/A

Trend                      : Near term up

Tenkan-Sen level              : 109.58

Kijun-Sen level                  : 109.85

Ichimoku cloud top             : 110.12

Ichimoku cloud bottom      : 110.03

New strategy  :

Stand aside

Position :  –

Target :  –

Stop : –

The greenback opened lower today and has remained under pressure, suggesting top has possibly been formed at 110.67 last week and downside risk remains for weakness to 109.15-20 (61.8% Fibonacci retracement of 108.27-110.67), however, break there is needed to add credence to this view, bring further fall to 108.95-00, however, reckon 108.55-60 would remain intact.

On the upside, expect recovery to be limited to 109.80 and 110.00-05 should hold, bring another retreat. Only a firm break above resistance at 110.49 would revive bullishness and signal the pullback from this week’s high of 110.67 has ended, bring retest of this level, break there would confirm the rise from 108.27 low has resumed and extend gain towards previous chart resistance at 110.95 later.