Despite our expectations to continue short, usdjpy continues to rally upwards and could extend even higher during this intraday. The upward rally that began yesterday is a mere corrective wave move and should not go beyond 112.003 from where we sold this pair during the previous day. At the moment, we won’t recommend any sell positions but if the price can rise up to 112.003, then this will be the best place to sell this pair. Expect a similar price action in CADJPY, CHFJPY, AUDJPY and HKDJPY. These pairs have a strong positive correlation of up to +72% and will move in the same direction during this intaday.
Wait and sell this pair around 112.003 with a target at 108.426