Wave Analysis
USD/JPY is currently trading with a bullish bias. Yesterday, the pair traded long as previously forecasted and even hit our target resistant level 106.29. We wait for a clear breakout above 106.29 to signal the continuation of the previous day’s bullish trend towards 108.96. This view can only be invalidated in case the pair rebound from 106.29. If the latter is the case, then we’ll look for short positions with an ideal target at 104.37. 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 have a similar price action during this intraday.
Trade Recommendations:
As long as the pair trades below 106.29-106.03, expect a possible bearish reversal to go short with an ideal target at 104.37. A break above 106.29 will call for long positions with an ideal target at 109.35.
