Trade Idea : USD/JPY – Sell at 111.35

USD/JPY – 110.81

Most recent candlesticks pattern   : N/A

Trend                      : Near term down

Tenkan-Sen level              : 110.98

Kijun-Sen level                  : 111.31

Ichimoku cloud top             : 111.95

Ichimoku cloud bottom      : 111.92

Original strategy  :

Sell at 112.00, Target: 111.00, Stop: 112.35

Position :  –

Target :  –

Stop : –

New strategy  :

Sell at 111.35, Target: 110.35, Stop: 111.70

Position :  –

Target :  –

Stop : –

As the greenback has resumed recent decline after meeting renewed selling interest at 112.08 on Friday, adding credence to our view that the selloff from 114.50 top is still in progress and downside bias remains for this move to extend weakness to 110.60-65 (61.8% projection of 114.50-111.55 measuring from 112.42), however, loss of downward momentum should prevent sharp fall below 110.30-35 and reckon 110.00-05 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 111.30-35 should limit upside. Above previous support at 111.48-55 would defer and suggest a temporary low is formed, bring retracement of recent decline to 111.75-80, then towards resistance at 112.08.