Trade Idea: USD/JPY - Sell at 90.05

USD/JPY – 89.34

Most recent candlesticks pattern : N/A
Trend : Sideways

Tenkan-Sen level : 89.36
Kijun-Sen level : 89.92
Ichimoku cloud top : 90.51
Ichimoku cloud bottom : 90.27

Original strategy :

Sell at 90.05, Target: 88.60, Stop: 90.70

New Strategy :

Sell at 90.05, Target: 88.60, Stop: 90.70

Although the greenback has continued to trade in narrow range and further consolidation above last week’s low at 88.55 would be seen, dollar’s upside should be limited to the Kijun-Sen (now at 89.92) and renewed selling interest should emerge below the Ichimoku cloud bottom (now at 90.27) and bring another decline later. Break of said support would extend the decline from 93.78 towards 88.32, however, loss of near term downward momentum would prevent sharp fall below 88.00 and reckon support at 87.36 would hold from here, bring strong rebound later.

In view of the above analysis, we are still looking to sell dollar on recovery. A firm breach of Ichimoku cloud top (now at 90.51) would signal low has possibly been formed but break of resistance at 91.28 is needed to confirm.