Trade Idea Wrap-up: USD/JPY - Buy at 108.05

USD/JPY – 109.25

Most recent candlesticks pattern   : N/A

Trend                      : Up

Tenkan-Sen level              : 109.41

Kijun-Sen level                  : 109.22

Ichimoku cloud top             : 108.27

Ichimoku cloud bottom      : 107.48

Original strategy  :

Buy at 108.05, Target: 109.60, Stop: 107.70

Position :  –

Target :  –

Stop : –

New strategy  :

Buy at 108.05, Target: 109.60, Stop: 107.70

Position :  –

Target :  –

Stop : –

As the greenback has eased after rising to 109.76, suggesting minor consolidation below this level would be seen and pullback to 108.90-00 and later 108.50-60 cannot be ruled out, however, reckon the upper Kumo (now at 108.27) would limit downside and bring another rise later, above said resistance at 109.76 would extend early erratic upmove from 99.01 low to 109.95-00 but near term overbought condition should limit upside to 110.35 (50% Fibonacci retracement of 121.69-99.01) and reckon 110.50 would hold from here.

In view of this, would not chase this rise at current level and would be prudent to buy dollar on pullback as the upper Kumo (now at 108.27) should limit downside. Only below support at 107.77 would abort and signal a temporary top is formed, bring correction to the lower Kumo (now at 107.48) but previous resistance at 106.95 should remain intact.

Trade Idea Wrap-up: USD/JPY - Buy at 108.05