Wave Analysis:
Instead of continuing short as previously, there was a positive correction of the impulsive wave (c) to the upper side but should not go beyond 110.72. As long as the price remains below 110.72, we still expect a possible rally towards 102.68. In the meantime, instead of going short immediately, we’re waiting for rebound from 110.72 to short this pair towards 102.68. If this level, 110.72, is violated to the upper side, then the price could accelerate towards 114.81, where there’e a possible sell position. This pair will move in the same direction with CADJPY, NZDJPY, AUDJPY and CHFJPY. These pairs have a strong positive correlation of up to +63% and will move in the same direction.
Trade Recommendation:
Wait and short the US Dollar upon a clear rebound from 110.72 with your target at 102.68.
Origin: FreshForex
