Trade Idea: USD/JPY — Sell at 90.70

USD/JPY – 89.70

Most recent candlesticks pattern : N/A
Trend : Down

Tenkan-Sen level : 89.88
Kijun-Sen level : 89.92
Ichimoku cloud top : 91.33
Ichimoku cloud bottom : 91.22

Original strategy :

Sell at 90.70, Target: 89.00, Stop: 91.35

New Strategy :

Sell at 90.70, Target: 89.00, Stop: 91.35

Despite dollar’s intra-day retreat from 90.42 to 89.35, break of 89.07/15 (61.8% Fibonacci retracement and minor support) is needed to signal the correction from 88.23 has ended there and bring resumption of recent decline for retest of 88.23 support which is likely to hold on first testing, otherwise, further choppy consolidation would take place and another corrective rise cannot be rule out.

In view of the above analysis, we are still looking to sell dollar on further rise as upside should be limited to 90.90 (61.8% Fibonacci retracement of 92.55 to 88.23). Only above the Ichimoku cloud area (now at 91.22-33) would abort and signal a temporary has been formed, then gain to 91.63 resistance would follow.

Based on ActionForex.com Technical Outlook