USD/JPY – 76.82

Most recent candlesticks pattern   : N/A
Trend                              : Down

Tenkan-Sen level              : 76.97
Kijun-Sen level                   : 77.21
Ichimoku cloud top                : 77.77
Ichimoku cloud bottom            : 77.70

Original strategy : 

Bought at 77.05, Target: 78.05, Stop: 76.70

Position: - Long at 77.05
Target:  - 78.05
Stop:- 76.70

New Strategy  :   

Hold long entered at 77.05, Target: 78.05, Stop: 76.60

Position: - Long at 77.05
Target:  - 78.05
Stop:- 76.60

As dollar has remained under pressure on broad-based weakness in the greenback and current breach of indicated support at 76.87 suggests caution on our near term bullishness and 76.65 needs to hold for prospect of another rebound later, above the Kijun-Sen (now at 77.21) would suggest an intra-day low is possibly formed but break of the Ichimoku cloud (now at 77.70-77) is needed to confirm and bring stronger rebound towards 78.29. Having said that, only a breach of this indicated resistance would add credence our bullish view for another leg of correction to take place, bring further gain to 78.55-60 but reckon minor resistance at 79.10 would hold from here.

In view of this, we are holding on to our long position entered at 77.05. A breach below said support at 78.65 would abort and signal top is formed, risk weakness towards last week’s low at 76.55 but only break there would extend recent decline to 76.30 but still reckon 76.00 would hold from here.