Trade Idea Wrap-up: USD/JPY – Sell at 109.90

USD/JPY – 109.20

Most recent candlesticks pattern   : N/A

Trend                      : Near term down

Tenkan-Sen level              : 109.15

Kijun-Sen level                  : 109.30

Ichimoku cloud top             : 110.38

Ichimoku cloud bottom      : 109.78

Original strategy  :

Sell at 109.90, Target: 108.90, Stop: 110.25

Position :  –

Target :  –

Stop : –

New strategy  :

Sell at 109.90, Target: 108.90, Stop: 110.25

Position :  –

Target :  –

Stop : –

The greenback has recovered after falling to 108.73, suggesting consolidation above this level would be seen and recovery to 109.50 cannot be ruled out, however, reckon 109.82-87 (38.2% Fibonacci retracement of 111.58-108.73 and previous resistance) would limit upside and bring another decline later, below said support at 108.73 would extend recent decline from 118.66 top to 108.40-50 (100% projection of 118.66-111.55 measuring from 115.51) but loss of near term downward momentum should prevent sharp fall below 108.20-25 (1.618 times projection of 112.20-110.13 measuring from 111.58) and 108.00 should hold, bring rebound later.

In view of this, would not chase this fall here and would be prudent to sell dollar on recovery as said resistance at 109.87 should limit upside and bring another decline later. Above previous support at 110.13 would abort and suggest low is formed, bring a stronger rebound later to the upper Kumo (now at 110.38).