Trade Idea Update: USD/JPY – Sell at 114.00

USD/JPY – 113.13

Original strategy  :

Sell at 114.00, Target: 113.00, Stop: 114.35

Position :  –

Target :  –

Stop : –

New strategy  :

Sell at 114.00, Target: 113.00, Stop: 114.35

Position :  –

Target :  –

Stop : –

Although the greenback recovered after falling to 112.90 yesterday and consolidation above this level would be seen for corrective bounce to 113.65-70, reckon 114.00 would limit upside and bring another decline later, below said support at 112.90 would extend recent decline from 115.51 to 112.76-77, then towards 112.50 but reckon downside would be limited to 112.00-10, bring rebound later.

In view of this, we are looking to sell dollar on subsequent recovery as 114.00 should limit upside. Only above previous support at 114.48-52 would abort and signal low is formed instead, risk a stronger rebound to 114.89 resistance first, break there would signal the retreat from 115.51 has ended, then gain to 115.20 resistance would follow.