Wave Analysis:
USDJPY is currently trading with a slight bullish bias. We expect the pair to trade on the high ranges as long as it trades above 112.39. A break above 112.39 may push the market further high to 112.52 from where we’ll look to sell. The current upward movement is merely a retracement and will likely end along the Resistance level 112.52 or 112.58. A breakout above 112.58 will invalidate the anticipated rebound from this level. Meaning, if the latter is the case, we will look for long orders with our target at 114.02. A clear rebound from 112.52 will confirm the anticipated downward rally. Ideally, the anticipated downward rally should form a double bottom with the level 110.71. This pair should be traded alongside GBP/JPY, these pairs had a strong positive correlation during the previous intraday and will likely have a similar price action during this intraday.
Trade Recommendations:
Conservative traders should wait for a clear rebound from either 112.39 or 112.52 to go short with a target at 110.71. Buy positions are only recommended upon a clear breakout above 112.52.
Origin: FreshForex
