Trade Idea: USD/JPY - Stand aside

USD/JPY – 89.46

Most recent candlesticks pattern : N/A
Trend : Sideways

Tenkan-Sen level : 89.48
Kijun-Sen level : 89.92
Ichimoku cloud top : 90.38
Ichimoku cloud bottom : 90.04

Original strategy :

Sell at 90.05, Target: 88.60, Stop: 90.70

New Strategy :

Stand aside

Despite intra-day brief bounce to 89.82, as dollar has retreated after faltering below the Kijun-Sen, suggesting further consolidation would be seen, below Friday’s low at 88.82 is needed to signal recent fall from 93.78 has resumed and bring retest of 88.55, break would extend weakness 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.

On the upside, only a sustain breach of 90.04-07 (current level of the Ichimoku cloud bottom and previous support turned resistance) would suggest a temporary low has possibly been formed and bring test of the upper Kumo (now at 90.38), above would confirm and then correction towards resistance at 91.28 would follow.