Wave Analysis:
As expected, the corrective wave (b) traded short as previously forecasted and could not go beyond the daily support at 112.59. We expect a possible retest of this support to buy the impulsive wave (c) towards 115.31, a break above this target will push the price further to the upper side towards 116.54 but should not go beyond 118 during this intraday. This view can only be rendered futile if the US Dollar end up breaking below 112.59, if this is the case, then we’ll wait for minor pullbacks towards the just broken level to go short towards 111.73 or even lower to 110.41. This pair has a parallel price action to CADJPY, AUDJPY and HKDJPY. These pairs have a strong positive correlation of up to +93% will have a similar price action during this intraday.
Trade Recommendations:
Only go long upon a clear rebound from 112.59. A clear break below this level will call for short positions with an ideal target at 110.41
Origin: FreshForex
