Wave Analysis
During the previous trading days, the corrective wave (4) traded on the higher ranges but could not go beyond the resistance zone 112.003-111.78. We expect this zone to have marked the end of this bullish correction, that the current bearish price rally is the continuation of the impulsive wave (5) to the lower side but should not go beyond the daily support level 104.402. This view will only be rendered futile in case the price breaks above 112.003, if this should be the case, then an acceleration towards 114.999 will be inevitable. This pair should be traded alongside CADJPY, AUDJPY, CHFJPY, and HKDJPY. These pairs have a strong positive correlation of up to +71% and will move in the same direction during this intraday.
Trade Recommendations:
Expect a possible bearish price rally towards 104.402.
Origin: FreshForex
