Trade Idea Update: USD/JPY – Sell at 111.70

USD/JPY – 110.88

Most recent candlesticks pattern   : N/A

Trend                      : Near term down

Tenkan-Sen level              : 111.62

Kijun-Sen level                  : 112.15

Ichimoku cloud top             : 112.88

Ichimoku cloud bottom      : 112.54

New strategy  :

Sell at 111.70, Target: 110.60, Stop: 112.05

Position :  –

Target :  –

Stop : –

As the greenback has dropped again in US morning, adding credence to our view that recent decline is still in progress and may extend further fall to 110.50-55, however, near term oversold condition should prevent sharp fall below 110.20-25 and reckon 110.00 would hold from here, risk from there is seen for a rebound to take place later. 

In view of this, would not chase this fall here and would be prudent to sell cable on recovery as the Kijun-Sen (now at 111.70) should limit upside. Above 112.00 would defer and risk test of previous support at 112.26 but break there is needed to signal low is formed instead.