Candlesticks Intraday

Trade Idea Wrap-up: USD/JPY - Sell at 109.70


USD/JPY - 109.13

Most recent candlesticks pattern   : N/A

Trend                      : Near term down

Tenkan-Sen level              : 109.07

Kijun-Sen level                  : 109.22

Ichimoku cloud top             : 110.20

Ichimoku cloud bottom      : 109.85

Original strategy  :

Sell at 109.50, Target: 108.50, Stop: 109.85

Position :  -

Target :  -

Stop : -

New strategy  :

Sell at 109.70, Target: 108.70, Stop: 110.05

Position :  -

Target :  -

Stop : -

As the greenback has fallen again after brief recovery and fell to a fresh 4-month low in NY morning, adding credence to our view that recent decline is still in progress and bearishness remains for weakness to 108.50, then towards previous chart support at 108.13, however, loss of near term downward momentum should prevent sharp fall below there and reckon 108.00 would hold on first testing. 

In view of this, would not chase this fall here and would be prudent to sell dollar on recovery as previous support at 109.54 should turn into resistance and limit dollar’s upside. Above the lower Kumo (now at 109.85) would risk test of indicated resistance at 110.18 but break there is needed to abort and signal recent decline has ended and risk a stronger rebound to 110.50 but price should falter below another previous resistance at 110.83.