Wave Analysis:
USDJPY is expected to traded in the higher ranges as long as it trades above 111.05. The pair broke below a key pivot level 112.4 which should now act as a resistant. Thus, as long as the level 111.05 protects the lower side, we will be looking for long positions with our target at 112.4. This view can only be invalidated should the price below 110.63, a close below this level will call for short positions with our target at 109.74.This pair should be alongside USD/CHF and EUR/JPY. These pairs have a strong positive correlation of up to +0.84 and will likely have a similar price pattern. Only buy or sell usd/jpy if pound dollar is giving the same signal.
Trade Recommendations:
We are long from 111.05 with our stop at 110.64. A clear break blow our stop will mean we are headed short with our next ideal target at 109.74.
Origin: FreshForex
