Trade Idea : USD/JPY – Buy at 111.20

USD/JPY – 111.62

Most recent candlesticks pattern   : N/A

Trend                      : Sideways

Tenkan-Sen level              : 111.53

Kijun-Sen level                  : 111.32

Ichimoku cloud top             : 110.86

Ichimoku cloud bottom      : 110.84

Original strategy  :

Buy at 110.85, Target: 111.85, Stop: 110.50

Position :  –

Target :  –

Stop : –

New strategy  :

Buy at 111.20, Target: 112.20, Stop: 110.85

Position :  –

Target :  –

Stop : –

As the greenback has surged again after breaking indicated resistance at 111.23-24 yesterday, adding credence to our view that low has indeed been formed at 110.48 and mild upside bias remains for this move to extend gain to resistance at 112.13, however, break there is needed to bring a stronger retracement of early decline from 114.37 top to 112.45-50 (61.8% Fibonacci retracement of 113.85-110.24) first. 

In view of this, we are looking to buy dollar on pullback as previous resistance at 111.23 should turn into support and contain dollar’s downside, bring another rebound later. Below 110.95-00 would defer and risk weakness to 110.65-70 but said support at 110.48 should remain intact.