Wave Analysis
As anticipated, the impulsive wave (c) traded massively short but is currently struggling above a key support level 113.28. Unless there’s a clear breakout below this support level, we choose to sit on the sidelines and only go long upon a clear rebound from 113.28 or short below 113.22. Technically, a break below 113.22 will push the price further to the lowerside towards 112.61 but should not go beyond 110.44. Expect an exact similar price action in USDCHF and CADJPY. These pairs had a strong positive correlation during the previous trading day and will likley move in the same direction during this intraday. Only buy or sell usdjpy if the other pairs are giving the same signal.
Trade Recommendations:
Wait for a clear break below 113.22 to go short with an ideak target at 112.61. Any clear rebound around 113.28 -113.22 will call for long positions with the first target at 114.39
Origin: FreshForex
