Trade Idea Wrap-up: USD/JPY – Sell at 112.00

USD/JPY – 111.06

Most recent candlesticks pattern   : N/A

Trend                      : Near term down

Tenkan-Sen level              : 110.95

Kijun-Sen level                  : 111.11

Ichimoku cloud top             : 111.93

Ichimoku cloud bottom      : 111.57

Original strategy  :

Sell at 112.00, Target: 110.80, Stop: 112.35

Position :  –

Target :  –

Stop : –

New strategy  :

Sell at 112.00, Target: 110.80, Stop: 112.35

Position :  –

Target :  –

Stop : –

As the greenback recovered after falling to 110.63, suggesting consolidation above this level would be seen and corrective bounce to 111.55-60 is likely, however, still reckon upside would be limited to 112.00-10 and bring another decline later, a break of said support at 110.73 would signal recent decline is still in progress and may extend further fall to 110.50 but near term oversold condition should prevent sharp fall below 110.20-25 and reckon 110.00 would hold from here. 

In view of this, would not chase this fall here and would be prudent to sell cable on recovery as 112.00 should limit upside. Only above indicated previous support at 112.26 would abort and signal low is formed instead, bring a stronger rebound to 112,59 but resistance at 112,87-90 should cap upside.