USD/JPY – 87.20

Most recent candlesticks pattern   : N/A
Trend                              : Sideways

Tenkan-Sen level          : 87.31
Kijun-Sen level                   : 87.61
Ichimoku cloud top                : 87.63
Ichimoku cloud bottom            : 87.40

Original strategy :   

Buy at 87.10, Target: 88.10, Stop: 86.60

New Strategy   :  

Buy at 86.85, Target: 88.00, Stop: 86.35

As the greenback has remained under pressure after falling from 88.12 yesterday, suggesting weakness towards support at 86.82 cannot be ruled out, however, as broad outlook is still consolidative, reckon oversold condition would limit downside and bring rebound later. Above 87.61-63 (current level of the Kijun-Sen and the Ichimoku cloud top) would suggest an intra-day low has possibly been formed but only break of resistance at 88.12 would retain bullishness and extend the rise from 86.27 low towards 88.50-60 (1.236 times projection of 86.34 to 87.78 measuring from 86.82) but reckon resistance at 89.12-15 (this is also the 1.618 times projection level) would cap upside.

In view of this, we are still looking to buy dollar on further fall. Only a breach of support at 86.34 would abort and indicate decline has resumed for retest of 86.27 and then 86.00.