Trade Idea Update: USD/JPY – Stand aside

USD/JPY – 110.95

New strategy  :

Stand aside

Position :  –

Target :  –

Stop : –

The greenback found renewed buying interest at 109.55 yesterday and has resumed recent upmove as price broke above resistance at 111.04 on active cross-selling in yen, however, loss of upward momentum should prevent sharp move beyond 111.40-45 (50% projection of 107.32-111.04 measuring from 109.55) and price should falter well below 111.85-90 (61.8% projection), bring correction later.

In view of this, would not chase this move here and would be prudent to stand aside for now. Below the Kijun-Sen (now at 110.45) would bring correction to the lower Kumo (now at 110.11) but only break there would signal an intra-day top is formed, weakness to 109.80 would follow but said support at 109.55 should remain intact.