Candlesticks Intraday

Trade Idea Wrap-up: USD/JPY - Sell at 113.50

Typography

USD/JPY - 112.68


Most recent candlesticks pattern   : N/A

Trend                      : Near term down


Tenkan-Sen level              : 112.68

Kijun-Sen level                  : 112.68

Ichimoku cloud top             : 113.78

Ichimoku cloud bottom      : 113.11


Original strategy  :

Sell at 113.50, Target: 112.40, Stop: 113.85

Position :  -

Target :  -

Stop : -


New strategy  :

Sell at 113.50, Target: 112.40, Stop: 113.85

Position :  -

Target :  -

Stop : -


As the greenback has recovered after marginal fall to 112.46, suggesting minor consolidation above this level would be seen and corrective bounce to the lower Kumo (now at 113.11) cannot be ruled out, however, reckon 113.51-54 (38.2% Fibonacci retracement of 115.20-112.46 and previous resistance) would limit upside and bring another decline later. Below said support at 112.46 would extend weakness to 112.35-39 (50% projection of 115.20-112.90 measuring from 113.54), then 112.10-15 (61.8% projection) but loss of downward momentum should prevent sharp fall below previous support at 111.69, risk from there has increased for a rebound to take place later.

In view of this, would not chase this fall here and would be prudent to sell dollar on subsequent recovery as said resistance at 113.54 should limit upside, bring another decline later. Only above  the upper Kumo (now at 113.78) would abort and signal low is formed instead, bring rebound to 114.20-25 later.

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Author: Action Forex
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