Trade Idea Wrap-up: USD/JPY – Stand aside

USD/JPY – 109.77

Most recent candlesticks pattern   : N/A

Trend                      : Near term down

Tenkan-Sen level              : 110.18

Kijun-Sen level                  : 110.46

Ichimoku cloud top             : 111.21

Ichimoku cloud bottom      : 110.86

Original strategy  :

Bought at 110.60, stopped at 110.25

Position :  – Long at 110.60

Target :  –

Stop : – 110.25

New strategy  :

Stand aside

Position :  –

Target :  –

Stop : –

The greenback has dropped in NY morning on active cross-buying in yen in part due to risk aversion, suggesting recent decline is still in progress, hence downside risk remains for recent decline to extend weakness to 109.50-55 (100% projection of 112.20-110.27 measuring from 111.46), however, near term oversold condition should prevent sharp fall below 109.20-25 and reckon 109.00 would hold from here, bring rebound later.

In view of this, would not chase this fall here and would be prudent to stand aside in the meantime. Above the Tenkan-Sen (now at 110.18) would bring recovery towards the Kijun-Sen (now at 110.46) but price should falter below 110.73 and bring another decline later.