Trade Idea Wrap-up: USD/JPY – Stand aside

USD/JPY – 103.33

Most recent candlesticks pattern   : N/A

Trend                      : Near term up

Tenkan-Sen level              : 103.51

Kijun-Sen level                  : 103.99

Ichimoku cloud top             : 104.93

Ichimoku cloud bottom      : 104.92

Original strategy  :

Sell at 104.05, Target: 103.05, Stop: 104.40

Position :  –

Target :  –

Stop : –


New strategy  :

Stand aside

Position :  –

Target :  –

Stop : –

As dollar has remained under pressure after this week’s selloff, suggesting the decline from 105.53 top is still in progress and may extend further weakness to 103.00, however, near term oversold condition should prevent sharp fall below 102.70 and reckon 102.50 would hold on first testing, risk from there has increased for a rebound later. 

In view of this, would not chase this fall here and would be prudent to stand aside in the meantime. Above 103.70-75 would bring recovery to the Kijun-Sen (now at 103.99), however, reckon upside would be limited to 104.15-20 and price should falter below previous support at 104.31, bring another selloff later.

 

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