Wave Analysis:
USDJPY is currently rallying along a significant pivot level 112.35. Unless the price closes successfully below 112.09, we will will execute a buy order upon a clear rebound from this pivot level with our ideal target at 116.46. Ideally, the pivot 112.35 should mark the end of the black ((b)) and to signal the unfolding of wave ((c)) towards 116.46. This pair should be traded alongside CAD/JPY, these pairs have a strong positive correlation of up top +0.86 and are thus expected to have a similar chart patterns and structures. Since CAD/JPY is pretty much bearish, a break below 112.35 in USD/JPY is highly likely. If the latter is the case, then go short in usd/jpy with your ideal target at 111.3.
Trade Recommendations:
Wait for a clear rebound from 112.35 to buy the the pair with your ultimate target at 116.46. A break below 112.09 will call for short positions with an ideal target at 111.3
Origin: FreshForex
