Wave Analysis:
Yesterday, we saw a slight correction of the impulsive wave (E) to the upperside but this wave is still very bearish on the weekly chart. Today, we expect a possible extension of this correction to the upperside but should not go beyond the upper resistive trend line, where we’ll be looking to resell the impulsive wave (E) with an ultimate target at 107.00. If the price can violated the immediate trend line, then we’ll wait for a break above 114.00, to confirm a possible rally towards 116.00. 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 today.
Trade Recommendations:
Wait for the current correction to end the short us dollar around the upper trendline
Origin: FreshForex
