01 September 2015, USD/JPY
USD/JPY is currently trading with a bearish Bias. The pair corrected itself downwards before hitting the 61.8% fib level, and is currently trading below the 50.0% fib level. As long as the pair trades below this level, short positions are recommended with the first stop at 38.2% fib level, and second stop at the 23.6% fib level, Any movements below the 118.31 support level will signal further movements below to the support 116.21. Traders trading this pair should also ensure that before buying/ selling this pair at the said key levels, ensure that US Dollar Index is giving the exact same signal at the same time. The two pairs are highly positive correlated and have been moving in the same direction for the past week. Trade Recommendations:
If you haven't bought the pair already, wait for it to bounce from the 50.0% fib level, but only buy up to the 38.2% fib level, any movements below the 118.31, will signal further movements below to the 116.21 support level. This view can only be rendered futile should the pair move upwards and closes above the 61.8% fib level and also above the now resistance trend line.