Trade Idea : USD/JPY – Stand aside

USD/JPY – 109.02

Most recent candlesticks pattern   : N/A

Trend                      : Near term down

Tenkan-Sen level              : 109.21

Kijun-Sen level                  : 109.10

Ichimoku cloud top             : 110.05

Ichimoku cloud bottom      : 109.55

New strategy  :

Stand aside

Position :  –

Target :  –

Stop : –

Despite falling briefly to 108.60, lack of follow through selling on break of 108.73 support and the subsequent rebound suggest consolidation above 108.60 would take place and test of 109.60-67 resistance cannot be ruled out, however, break there is needed to signal low is formed, bring further gain to 110.00 and possibly towards 110.37 resistance but price should falter well below last week’s high at 110.95.

On the downside, below said support at 108.60 would signal recent decline is still in progress and may extend further weakness to 108.40, then towards 108.20-25, however, near term oversold condition should prevent sharp fall below latter level and reckon 108.00 would hold from here, bring rebound later. As near term outlook is mixed, would be prudent to stand aside in the meantime.