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

USD/JPY – 111.25

Most recent candlesticks pattern   : N/A

Trend                      : Near term down

Tenkan-Sen level              : 111.54

Kijun-Sen level                  : 111.73

Ichimoku cloud top             : 112.10

Ichimoku cloud bottom      : 111.99

New strategy  :

Sell at 112.00, Target: 111.00, Stop: 112.35

Position :  –

Target :  –

Stop : –

As the greenback has fallen gain after brief bounce above 112.00 level, adding credence to our view that recent decline from 114.50 top is still in progress and downside bias is seen for this move to extend weakness to 110.90-95 (50% projection of 114.50-111.55 measuring from 112.42), however, loss of downward momentum should prevent sharp fall below 110.60-65 (61.8% projection and previous support) and reckon 110.35 would hold from here, bring rebound later.

In view of this, would not chase this fall here and would be prudent to sell dollar on recovery as 112.08 resistance should cap upside, bring another decliner. Only break of resistance at 112.42 would abort and signal low is formed, bring retracement of recent decline towards resistance at 112.87 later.