Wave Analysis
USD/JPY is currently trading with a bearish bias. Yesterday, the pair rebounded from the support level 104.37, headed long and is still pretty much bullish according to the previous day’s candle. We expect the current downward rally to be a mere retracement and should not go beyond 104.377 from where we’ll be looking for low risk buy opportunities. A clear break below 103.98 will invalidate the anticipated upward rally. This pair should be traded GBP/JPY, NZD/JPY, CAD/JPY and AUD/JPY. These pairs have a strong positive correlation of up to +0.85 and will have a similar price action during this intraday.
Trade Recommendations:
Wait for the current downward rally to rebound from 104.37-103.98 then go long with an ideal target at 106.51. Sell positions will only be ideal below 103.98 with an ideal target at 102.01
