Wave Analysis
USD/JPY is currently trading with a slight bullish bias. During the previous trading week ending 22nd July 2016, the pair broke above a key resistance level 106.51 but ended up closing below 106.16 during the close of that week. During this intraday, we expect to continue to the lower side, that the current upward rally is a mere pullback and should not close above 107.50. This pair should be traded alongside EUR/JPY, AUD/JPY, NZD/JPY, and CAD/JPY. These pairs have a strong positive correlation of up to +0.85 and will have similar price action during this intraday.
Trade Recommendation:
As long as the pair trade below 106.10 look for short positions with an ideal target at 104.37. Buy positions are only recommended above 106.51 with an ideal target at 108.96.
Origin: FreshForex
