Trade Idea : USD/JPY – Target met and stand aside

USD/JPY – 110.67

Most recent candlesticks pattern   : N/A

Trend                      : Up

Tenkan-Sen level              : 110.14

Kijun-Sen level                  : 110.30

Ichimoku cloud top             : 110.44

Ichimoku cloud bottom      : 110.01

Original strategy  :

Bought at 109.65, met target at 110.65

Position :  – Long at 109.65

Target :  – 110.65

Stop : –

New strategy  :

Stand aside

Position :  –

Target :  –

Stop : –

Although the greenback retreated quite sharply after using to 111.04 yesterday, dollar found good support at 109.55 (we recommended to buy at 109.65 and a long position was entered) and has rebounded in line with our bullishness expectation (our long position reached target at 110.65 with 100 points profit), however, reckon said resistance at 111.04 would hold on first testing, bring further consolidation. Only a firm break above this level would signal recent upmove has resumed for headway to 111.40-50 but previous resistance at 111.71 should hold from here.

As we have taken profit on our long position entered at 109.65, would not chase this move here and would be prudent to stand aside for now. Below the Kijun-Sen (now at 110.30) would prolong consolidation, bring weakness to 110.00 but said support at 109.55 should remain intact, bring another rebound later.