Wave Analysis
USD/JPY is currently consolidating around 110.97-111.04. We are waiting for a clear rebound from this zone to go long with our target at 111.66. Ideally, we expect an upward rally towards 111.77 to form a double top with level 111.66 from where we will be looking for short positions. During this intraday, key resistance levels are seen at 111.09, 111.12 and 111.17. while Key support levels are seen at 110.97, 110.94, and 110.9. This view can only be invalidated if the price ends up closing below 110.81. This pair should be traded alongside EUR/JPY, AUD/JPY and GBP/JPY. These pairs have a strong positive correlation of up to +0.92 and will likely have a similar price action during this intraday. Only buy or sell usd/jpy is the other positively correlated pairs are giving the same signal.
Trade Recommendations:
Wait for a clear rebound from 110.04-110.97 to go long with your target at 111.89. A clear breakout above this level will push the price further to the upper side. A clear rebound from this level will reverse the market to the lower side.
Origin: FreshForex
