Trade Idea Update: USD/JPY – Buy at 113.20

USD/JPY – 113.75

Original strategy  :

Buy at 113.20, Target: 114.20, Stop: 112.85

Position :  –

Target :  –

Stop : –

New strategy  :

Buy at 113.20, Target: 114.20, Stop: 112.85

Position :  –

Target :  –

Stop : –

Although the greenback opened higher and rose to 114.10, current retreat suggests consolidation below this level would be seen and pullback to 113.40-45 (38.2% Fibonacci retracement of 112.30-114.10) cannot be ruled out, however, reckon 113.15-20 (previous resistance and 50% Fibonacci retracement) would hold and bring another rise later, above said resistance at 114.10 would extend recent rise from 111.65 to 114.40-50 but reckon 114.75-80 would hold from here due to oversold condition. 

In view of this, we are looking to buy dollar again on pullback as 113.15-20 should limit downside and bring another rise. Below the lower Kumo (now at 112.72) would defer and suggest top is possibly formed instead, risk test of indicated support at 112.30 which is likely to hold from here.