Wave Analysis:
For the past few days, the corrective wave (D) extended massively to the upper side but is currently being resisted along the upper trend line. As long as this trend line protects the upper side, we expect this trend line to have marked the end of this correction, that the current bearish price rally is the unfolding of the impulsive wave (D) to the lower side but should not go beyond the lower support trend line . If this trend line is broken, then a drop towards 106.09 is expected. This pair should be traded alongside CADJPY, NZDJPY, AUDJPY, and CHFJPY. These pairs have a strong positive correlation and will move in the same direction during this trading day. Only buy or sell usdjpy if the other positively correlated pairs are giving the same signal.
Trade Recommendations:
Short the impulsive wave (E) now with your target at 106.
Origin: FreshForex
