Trade Idea: USD/JPY - Sell at 97.00

USD/JPY - 96.70

Most recent candlesticks pattern: Morning star
Trend : Sideways

Tenkan-Sen level : 96.39
Kijun-Sen level : 96.92
Ichimoku cloud top : 97.99
Ichimoku cloud bottom : 97.21

Original Strategy: Buy at 96.00, Target: 97.00, Stop: 95.50

New strategy : Sell at 97.00, Target: 96.20, Stop: 97.50

Dollar continued to move higher today as we expected in our previous update, however, we were unable to re-enter long as the pullback was too shallow, price did test the Ichimoku cloud bottom but then retreated from 97.17, leaving a shooting star on the 4 hour chart, suggesting consolidation below the Ichimoku cloud area would take place and mild downside bias is seen for retreat to 96.20, however, strong support at 95.51 should remain intact and the greenback is likely to stage another rebound early next week.

In view of this near term downside bias, we are turning short for such a pullback but one must book profit when price approaches 96.00 as indicated above, support at 95.51 (where decent buying interest is reported) should put a floor there.

If price keeps holding above the Tenkan-Sen (now at 96.39) and rises above 97.50, then gain toward the Ichimoku cloud top (currently locating at 97.99) would follow, however, price should falter well below resistance at 98.58.