Trade Idea: USD/JPY - Buy At 94.50

USD/JPY – 95.05

Most recent candlesticks pattern : Hammer

Trend : Sideways

Tenkan-Sen level : 94.92
Kijun-Sen level : 95.13
Ichimoku cloud top : 94.70
Ichimoku cloud bottom : 94.24

Original strategy : Buy at 94.70, Target: 95.60, Stop: 94.15

New Strategy : Buy at 94.50, Target: 95.60, Stop: 93.95

As dollar has retreated after faltering below yesterday's high of 95.47, suggesting further consolidation would take place and fall to the Ichimoku cloud top (now at 94.70) is likely, however, renewed buying should emerge around 94.50 and as long as 94.01 support holds, prospect of another rise remains. A firm break of 95.47 would signal the rise from 91.73 has resumed to retest 95.89, then towards 96.15/20 (the confluence of 100% projection of 91.73 to 94.80 measuring from 93.09 and 61.8% Fibonacci retracement of 101.45 to 91.73 at 96.16). Even the greenback does move up to this level, we still expect dollar to stay well below key resistance at 97.00.

In view of this, we prefer to buy on further fall but one must book profit on such a rise. Below 94.01 support would confirm top has been formed and bring further decline to 93.81 (50% Fibonacci retracement of 91.73 to 95.89) then towards 93.32 (61.8%) later.