Wave Analysis:
USD/JPY is currently trading with a strong bearish bias. Unfortunately our stop was knocked out, instead of the pair heading long as previously forecasted, it rebounded from 113.81, and is currently trading just above a key pivot level 112.43. Although we anticipated downward rally towards 111.100, we are waiting for a clear breakout below 112.06 to give us the green light to continue short with our target at 111.100. A clear rebound from 111.100 would mean looking for long positions with our target at 114.83. This pair should be traded alongside HKD/JPY, TRY/JPY, and EUR/NZD. These pairs have strong positive correlation of up to +0.88 and will likely have a similar chart setups. Only buy or sell usd/jpy if all the other positively correlated pairs are giving the same signal.
Trade recommendations:
If you are not short already, wait for a clear breakout below 112.06 go short with your target at 111.100. A clear rebound from 111.100 would mean looking for long positions with your target at 114.83.
Origin: FreshForex
