Wave Analysis
USD/JPY is currently trading with a slight bearish bias. Yesterday, the pair tested the support level 104.25, but ended up closing above it. During this intraday, this pair is likely to trade with a bullish bias since the previous daily candle is very much bullish, which means the bulls could still be having enough energy to push the price to the upper side. Although we expect an acceleration to the upper side, we will only be interested in buying this pair in case the price close above 105.06. This pair should be traded alongside EUR/JPY, HKD/JPY and USD/CAD. These pairs have a strong positive correlation of up to +0.92 and will have a similar price action during this intraday.
Trade Recommendations:
Wait for a clear break above 105.06, then go long with an ideal target at 105.80. Sell positions are only recommended below 104.15 with an ideal target at 101.
Origin: FreshForex
