Wave Analysis:
During the previous trading week ending 23rd December 2016, the pair retraced to the lower side and even broke below the falling wedge. As long as the pair remains below this wedge, we expect a possible bearish wave count towards 116.69, a breakout below this level will will push the price further to the lower side but should not go beyond 114.95. This view may only be rendered futile in case the pair end up breaking above 118.67. A break above this level will mean we’re continuing long with the overall upward trend with our ultimate target at 124.00. Expect an exact similar wave count in HKDJPY, CADJPY, NZDJPY and an exact opposite price action GBPUSD, EURUSD. The latter pairs have a strong negative correlation to the first pair and will move in exact opposite price action during this intraday.
Trade Recommendations:
As long as the pair remains below the falling wedge and also below 118.19, expect a possible bearish price rally towards 114.95. Buy positions are only ideal above 118.67 with a target at 124.00.
Origin: FreshForex
