Trade Idea Wrap-up: USD/JPY – Sell at 112.70

USD/JPY – 111.70

Most recent candlesticks pattern   : N/A

Trend                      : Near term down

Tenkan-Sen level              : 111.88

Kijun-Sen level                  : 111.89

Ichimoku cloud top             : 112.50

Ichimoku cloud bottom      : 112.20

Original strategy  :

Sell at 112.70, Target: 111.70, Stop: 113.05

Position :  –

Target :  –

Stop : –

New strategy  :

Sell at 112.70, Target: 111.70, Stop: 113.05

Position :  –

Target :  –

Stop : –

As the greenback has remained under pressure after recent selloff, suggesting the decline from 114.50 top is still in progress and bearishness remains for further weakness to 111.50, then 111.20-25, however, reckon 111.00 would hold from here due to loss of downward momentum, risk from there has increased for a rebound to take place probably tomorrow.

In view of this, would not chase this fall here and would be prudent to sell dollar on subsequent recovery as 112.70-75 should limit upside. A firm break above resistance at 112.87 would defer and risk a stronger rebound to 113.10-20 but price should falter below resistance at 113.58, bring another selloff later.