Wave Analysis:
USD/JPY is currently trading with a bearish bias. From the hourly chart, double top pattern is in a process of continuation with the resistance level 109.34 being the top . We expect a downward rally towards 108.35, then an upward retracement towards 108.56 to give us a low risk sell opportunities. In the meantime, we wait for a clear breakout below 108.58 to signal the continuation of the downward rally. This view can only be invalided should the price rebound from the zone 108.65-108.58, if this is the case, then we’ll be keen to buy this pair but with our ideal target at 109.34, this means the price may form a triple top at 109.34.This pair should be traded alongside EUR/JPY, GBP/JPY, AUD/JPY, and USD/CHF. These pairs have a strong positive correlation of up to +0.95 and will likely have a similar price action during this intraday.
Trade Recommendations:
If you are not short already, wait for a clear breakout below 106.58, then go short with your targets at 108.35 and 107.91. A clear rebound from 108.65-108.58 will call for long positions with a target at 109.34.
Origin: FreshForex
