Wave Analysis
USD/JPY is currently trading with a bearish bias. During the previous trading day, usd/jpy traded short and even broke below the immediate trend line . We are waiting for a bearish confirmation pattern below this trend line for us to execute sell orders with an ultimate target at 111.30. Otherwise, as long as the pair trades above this trend line, long positions will be ideal for trading with an ideal target at 116.67. This pair should be traded alongside NZD/JPY and GBP/JPY. These pairs have a strong positive correlation of up to +0.89 and are thus expected to have a similar price action. Only buy or sell usd/jpy if all the other positively correlated pairs are giving the same signal.
Trade Recommendations
Wait for a bearish confirmation pattern below this trend line then sell the pair with an ultimate target at 111.30. Otherwise, as long as the pair trades above this trend line, look for long positions with an ultimate target at 116.67
Origin: FreshForex
