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

USD/JPY – 111.02

Most recent candlesticks pattern   : N/A

Trend                      : Near term up

Tenkan-Sen level              : 111.21

Kijun-Sen level                  : 111.25

Ichimoku cloud top             : 111.71

Ichimoku cloud bottom      : 111.48

New strategy  :

Stand aside

Position :  –

Target :  –

Stop : –

As the greenback has fallen again on renewed cross-buying in yen, adding credence to our view that top has been formed at 112.20 last week and consolidation with mild downside bias remains for test of previous support at 110.72, however, near term oversold condition should limit downside to 110.50 and price should stay well above support at 110.11, bring rebound later. 

In view of this, would not chase this fall here and would be prudent to stand aside in the meantime. Above the Kijun-Sen (now at 111.25) would bring recovery to 111.45-50 but break of intra-day resistance at 111.59 is needed to signal low is formed, bring a stronger rebound to 111.90-00 later.