Trade Idea Wrap-up: USD/JPY – Buy at 109.00

USD/JPY – 109.85

Most recent candlesticks pattern   : N/A

Trend                      : Down

Tenkan-Sen level              : 109.70

Kijun-Sen level                  : 109.41

Ichimoku cloud top             : 108.32

Ichimoku cloud bottom      : 108.14

Original strategy  :

Buy at 109.30, Target: 110.30, Stop: 108.95

Position :  –

Target :  –

Stop : –

New strategy  :

Buy at 109.00, Target: 110.20, Stop: 108.65

Position :  –

Target :  –

Stop : –

As the greenback has surged again today after brief pullback, dampening our bearishness and suggesting the rise from 107.32 low is still in progress, hence further gain towards resistance at 110.49 would be seen, however, near term overbought condition should limit upside to resistance at 110.67, risk from there has increased for a retreat to take place soon.

In view of this, would not chase this rise here and would be prudent to buy dollar on subsequent pullback as 109.00 should limit downside. Below 108.70 would defer and risk correction to 108.50 but still reckon downside would be limited to 108.30-35 and bring another rally later.