Trade Idea: USD/JPY - Buy at 102.00
Dollar's near term sideways trading is expected to continue and still reckon 102.00 would limit downside, bring another rise later towards 102.80 resistance, break there would add credence to our view that low has possibly been formed at 101.21 and bring a stronger rise to 103.00 but reckon upside would be limited to 103.40-45 and price should falter well below resistance at 103.76.
In view of this, we are looking to buy dollar on pullback. Below 101.90 would prolong consolidation but downside should be limited to 101.65-70 and price should stay well above strong support at 101.20-21.
Trade Idea: EUR/USD - Sell at 1.3840
As the single currency has recovered after falling sharply to 1.3749 yesterday, suggesting consolidation above this level would be seen, above the Kijun-Sen (now at 1.3837) would bring correction towards yesterday's high of 1.3845 but the lower Kumo (now at 1.3848) should limit upside, bring another decline later. A break of said support at 1.3749 would extend recent decline from 1.3967 (last week high) for retracement of recent upmove to 1.3721-22 (previous minor support and 50% Fibonacci retracement of 1.3477-1.3967), however, oversold condition should prevent sharp fall below support at 1.3707 and price should stay well above 1.3660-65 (61.8% Fibonacci retracement).
In view of this, we are looking to sell euro on recovery as said resistance at 1.3845 should limit upside. Only above previous support at 1.3880 would suggest low is formed instead and risk a stronger rebound to 1.3900 before prospect of another selloff.
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