25 August 2015, USD/JPY
USD/JPY is trading with a bearish Bias. The pair successfully managed to close below our previous week's pivot 120.61. and even went lower to the low of 116.162. We are waiting for a corrective move rally up to 120.617 before continuing bearish. However, should the price close above the level 120.61, and also above the now resistance trend line, then the current bearish outlook should be considered futile. However, the bearish move is expected to go up to the key support level 116.162. Any movements below this level will signals further movements below. Traders willing to buy this pair may do so above the resistant level 120.61, or wait for price to bounce from 116.162. Again, If you want to buy from 116.162, then you must also watch and ensure that EUR/USD is trading at around 1.17112, and also US Dollar index is trading around 92.60 at the same time USD/JPY is trading around 116.162. If EUR shows a clear sell signal at 1.17112, then you can Buy USD/JPY, the two are strongly Negatively correlated.
Sell positions are recommended as long as the pair trades below 120.61. However, should the pair close above this level, buy positions should be reconsidered but with a stop at the support trend line. A potential buy signals can also be got from 116.162.
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