Trade Idea : USD/JPY – Buy at 111.25

USD/JPY – 111.79

Most recent candlesticks pattern   : N/A

Trend                      : Near term up

Tenkan-Sen level              : 111.95

Kijun-Sen level                  : 111.57

Ichimoku cloud top             : 111.14

Ichimoku cloud bottom      : 110.81

New strategy  :

Buy at 111.25, Target: 112.25, Stop: 110.90

Position :  –

Target :  –

Stop : –

As the greenback has eased after intra-day initial rise too 112.20, suggesting minor consolidation below this level would be seen and test of the Kijun-Sen (now at 111.57) is likely, however, reckon the upper Kumo (now at 111.14) would contain downside and bring another rise later, above indicated resistance at 112.20-26 would extend the upmove from 110.11 low to 112.50-55 but price should falter below previous resistance at 112.87-90, bring retreat.

In view of this, would not chase this rise here and would be prudent to buy dollar on pullback as 111.25-30 should limit downside. Below 110.90-95 would abort and signal top is formed instead, bring test of support at 110.72, break there would suggest the rebound from 110.11 (this week’s low) has ended, then further fall to 110.45-50 would follow.