Trade Idea: USD/JPY - Exit long entered at 96.20

USD/JPY – 96.07

Most recent candlesticks pattern : Hammer
Trend : Turning up

Tenkan-Sen level : 96.48
Kijun-Sen level : 96.02
Ichimoku cloud top : 96.29
Ichimoku cloud bottom : 95.85

Original strategy : Bough at 96.20, Target: 97.20, Stop: 95.70

New Strategy : Exit long entered at 96.20

The greenback dropped sharply after the release of worse-than-expected U.S. job data and active cross buying in Japanese unit also put pressure on this currency pair and test of the Ichimoku cloud bottom (now at 95.85) cannot be ruled out, below there would extend fall towards 95.31 support. However, only loss of 95.04 support would signal the correction from 94.88 has ended, then decline from 98.90 would resume for retest of 94.88 and later towards 94.44.

In view of this, we are exit long our long entered at 96.20 and stand aside in the meantime due to near term choppy price action. Only above 96.90/00 resistance would revive our bullish view on dollar and extend the rise from 94.88 to 97.36 (61.8% Fibonacci retracement of 98.90 to 94.88). Above there would confirm the correction from 98.90 temporary top has actually ended at 94.88 earlier, then headway towards 97.95 (76.4%) would follow.