Trade Idea Wrap-up: USD/JPY - Sell at 119.80

USD/JPY – 119.05

Most recent candlesticks pattern   : N/A

Trend                      : Down

Tenkan-Sen level              : 119.19

Kijun-Sen level                  : 119.25

Ichimoku cloud top             : 119.68

Ichimoku cloud bottom      : 119.36

Original strategy  :

Sell at 119.80, Target: 118.80, Stop: 120.15

Position :  –

Target :  –

Stop : –

New strategy  :

Sell at 119.80, Target: 118.80, Stop: 120.15

Position :  –

Target :  –

Stop : –

Although the greenback has retreated after meeting resistance at 119.70, break of support at 118.70 is needed to signal recent decline from 123.76 has resumed and extend weakness to 118.50, then towards 118.20-25, however, loss of downward momentum should prevent sharp fall below 118.00, risk from there is seen for a rebound later. If said support continues to hold, then further consolidation would take place and another bounce to 119.70 cannot be ruled out but price should falter well below previous support at 120.00-02, bring another decline later. 

In view of this, we are looking to sell dollar on subsequent recovery as previous support at 120.00-02 should turn into resistance and cap upside, bring another decline. Only break of intra-day resistance at 120.47 would abort and signal low is formed, bring a stronger rebound to 120.66 resistance.

Trade Idea Wrap-up: USD/JPY - Sell at 119.80