Wave Analysis:
USDJPY is currently trading with a slight bullish bias. We expect a break either above the rising wedge for us to go long with our targets at 112.61 and 114.09 or a break below the green trendline forming bottom of the falling wedge for us to go short with our target at 110.64. A break below 110.64 will mean we are headed further short with our target at 109.81. In another view, traders should be cautious about the level 111.68. This level is a significant level and can act as a short term supply level, thus look for possible reversals from this level and also from the level 112.06. This pair should be traded alongside NZD/JPY and GBP/JPY. These pairs have a strong positive correlation of up to +0.89 and will likely have a similar price action during this intraday. Only buy or sell usd/jpy if all the other positively correlated pairs are giving the same signal.
Trade Recommendations:
Expect a break either above the rising wedge for you to go long with your targets at 112.61 and 114.09 or a break below the wedge to go short with your target at 110.64. A break below 110.64 will mean looking for further short positions with with your target at 109.81.
Origin: FreshForex
