Trade Idea: USD/JPY — Buy at 89.50

USD/JPY – 90.41

Most recent candlesticks pattern : N/A
Trend : Sideways

Tenkan-Sen level : 89.94
Kijun-Sen level : 89.41
Ichimoku cloud top : 90.45
Ichimoku cloud bottom : 89.34

Original strategy :

Buy at 89.50, Target: 90.90, Stop: 88.85

New Strategy :

Buy at 89.50, Target: 90.90, Stop: 88.85

Dollar’s intra-day retreat from 90.69 to 90.15 suggests the rise from 88.14 has formed a minor top there and minor consolidation would take place and retracement to the Tenkan-Sen (now at 89.94) cannot be ruled out, however, renewed buying interest should emerge above 89.41-49 (current level of the Kijun-Sen and previous resistance) and bring another upmove later. Above said resistance would extend gain towards 91.00 but near term overbought condition should limit upside to 91.40/50.

In view of the above analysis, we are looking to buy dollar on further pullback for such a rise. Below 88.85/90 would signal the rise from 88.14 is over, then weakness to 88.40/50 would be seen.

Based on ActionForex.com Technical Outlook