Trade Idea: USD/JPY - Sell at 94.00

USD/JPY - 92.85

Most recent candlesticks pattern : Hammer
Trend : Down

Tenkan-Sen level : 93.13
Kijun-Sen level : 93.96
Ichimoku cloud top : 96.22
Ichimoku cloud bottom : 95.94

Original strategy : Sell at 94.00, Target: 92.70, Stop: 94.50

New Strategy : Sell at 94.00, Target: 92.70, Stop: 94.50

Although the greenback retreated after rising to 93.60 earlier today in European session, the 'hammer' candlestick pattern suggests further consolidation above 91.80 support would take place and another corrective rebound cannot be ruled out, break of 93.60 would bring retracement to 94.00 (just above the Kijun-Sen at 93.96), however, we still expect price to falter below 94.40 (50% Fibonacci retracement of 97.00 to 91.80) and bring another selloff later today or tomorrow.

In view of this analysis, we are still looking to sell dollar again on further rise but it is necessary to see a break of 91.80 support to confirm decline has once again resumed for further fall to 91.50 later.

On the upside, only break of resistance at 94.66 (previous support turned resistance) would signal a temporary low has been formed and bring stronger corrective rise to 95.01 (61.8% Fibonacci retracement of 97.00 to 91.80) but resistance at 95.46 should hold.