USD/JPY – 85.29

Most recent candlesticks pattern   : N/A
Trend                              : Sideways

Tenkan-Sen level          : 85.36
Kijun-Sen level                   : 85.44
Ichimoku cloud top                : 85.74
Ichimoku cloud bottom            : 85.38

Original strategy :  

Sell at 85.95, Target: 84.95, Stop: 86.45

New Strategy   :  

Sell at 85.95, Target: 84.95, Stop: 86.45

Dollar’s near term sideways trading is expected to continue and as long as support at 85.11 holds, another corrective bounce to 85.69-74 (previous resistance and current level of the flat ground Ichimoku cloud top) cannot be ruled out, however, as broad outlook is still consolidative, upside should be limited to 85.90-96 (61.8% Fibonacci retracement of 86.39 to 85.11 and previous resistance) but price should falter well below resistance at 86.39-46, bring another decline later.

Break of said support at 85.11 would extend the fall from 86.39 to 84.94 and break of this level would confirm early downtrend has resumed for a retest of recent low at 84.72, then towards 84.25/30 (61.8% projection of 88.12 to 84.72 measuring from 86.39) but reckon 84.00 would hold from here.

In view of this, we are still looking to sell dollar on subsequent recovery. A rise above said resistance area at 86.39-46 (this also include 50% Fibonacci retracement of 88.12 to 84.72) would shift risk to upside and extend the upmove from 84.72 for stronger retracement of early decline to next resistance at 86.89 (just above 61.8% Fibonacci retracement).