Wave Analysis
Yesterday, the corrective wave (4) went a bit higher than expected but could not close above 113.94. Following the rejection from 113.94, we expect the current downward rally to the continuation of the impulsive wave (5) to the lowerside but should not go beyond 112.08. Any clear break below this level will culminate into further bearish momentum with the next ideal target at 110. Expect a similar price action in USDCHF, CADJPY, NZDJPY, AUDJPY and HKDJPY. These pairs have a strong positive correlation of up to +96% and will have a similar price movement during this intraday. Only buy or sell usdjpy if the other positively correlated pairs are giving the same signal.
Trade Recommendations:
Remain short with your first target at 112.08
Origin: FreshForex
