Wave Analysis
USDJPY is currently trading with a bullish bias. For the past week, the pair has been trading within the rising channel, not breaking above or below it. Although we expect to continue long with the upward trend, we are waiting for a break above 113.81 to confirm the anticipated upward rally. A break above this level will push the market to the upper side with wave (5) ending along the upper trend line. Only a clear rebound from this level will invalidate the anticipated upward rally. If the latter is the case, then we will sell the pair with our target at 112.36. This pair should be traded alongside USD/CHF, and USD/CAD. These pairs have a strong positive correlation of up to +0.89 and will likely have a similar price action during this intraday, only buy or sell usd/jpy if the other pairs are giving the same signal.
Trade Recommendations.
Expect an upward rally during this intraday. Wait for a clear close above 113.81, then buy the pair with your targets along the upper trend line. A clear rebound from 113.81 will call for short positions with a target at 112.36
Origin: FreshForex
