Wave Analysis:
USD/JPY is currently trading with a strong bearish bias. Yesterday, the pair traded long and ended forming a double top at the level 111.75. The previous hour’s candle is pretty much bearish and could lead to an acceleration to the lower side. Thus, following the just witnessed downward thrush, we are very reluctant to open long positions, instead, we’ll be looking for downward trend continuation patterns with our ultimate target at 107.91. Ideally, a clear breakout below 109.10 will push the price further to the lower side. This pair should be traded alongside EUR/JPY, GBP/JPY and AUD/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 the other pairs are giving the same signal.
Trade Recommendations:
In case of a clear breakout below 109.10, wait for a minor upward retracement towards 109.09, to give you a low risk sell opportunity. The anticipated sell order should have a target at 107.91
Origin: FreshForex
