Trade Idea Wrap-up: USD/JPY – Sell at 112.00

USD/JPY – 111.14

Most recent candlesticks pattern   : N/A

Trend                      : Near term down

Tenkan-Sen level              : 111.20

Kijun-Sen level                  : 111.60

Ichimoku cloud top             : 112.75

Ichimoku cloud bottom      : 112.61

Original strategy  :

Sell at 111.70, Target: 110.60, Stop: 112.05

Position :  –

Target :  –

Stop : –

New strategy  :

Sell at 112.00, Target: 110.80, Stop: 112.35

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 112.00 should limit upside. Only above indicated previous support at 112.26 would abort and signal low is formed instead, bring a stronger rebound to 112,59 but resistance at 112,87-90 should cap upside.