Trade Idea : USD/JPY – Stand aside

USD/JPY – 112.59

Most recent candlesticks pattern   : N/A

Trend                      : Up

Tenkan-Sen level              : 112.52

Kijun-Sen level                  : 112.73

Ichimoku cloud top             : 112.84

Ichimoku cloud bottom      : 112.38

New strategy  :

Stand aside

Position :  –

Target :  –

Stop : –

Despite falling to 112.38 yesterday, lack of follow through selling and the subsequent rebound suggest further consolidation would take place and recovery to 112.85-90 cannot be ruled out, however, price should falter below indicated resistance at 113.26, bring another retreat later, below said support at 112.38 would signal top has been formed at 113.26, bring retracement of recent rise to 112.00, then 111.75-80 but previous support at 111.47 should remain intact.

On the upside, whilst recovery to 112.85-90 cannot be ruled out, reckon said resistance at 113.26 would hold and bring further consolidation. Only a break of said this week’s high at 113.26 would revive bullishness and signal recent upmove has resumed, then further gain to previous resistance at 113.58 would follow but loss of upward momentum should prevent sharp move beyond 113.75-80 and reckon 114.00-10 would remain intact. As near term outlook is mixed, would be prudent to stand aside for now.