02 September 2015, USD/JPY
USD/JPY is currently trading with a bearish Bias. The pair crossed above the 38.2% fib level and is currently trading above it. It is anticipated that, as long as the pair trades above the 38.2% fib level, long positions are recommended. It is however, expected that the current wave will rally downwards to the 119.67 before continuing long. Traders trading this pair should also observe closely other pairs such as USD/CHF, NZD/JPY, NZD/CHF, CAD/JPY and US Dollar index. These pairs have a very strong positive correlation of upto +0.98, thus they are expected to move in the same direction. Thus, when buying or selling USD/JPY, ensure that at least Half of these pairs are showing the same signal.
As long as the a pair trades above the 38.2% fib level, long positions are recommended up to the 50.0 fib level. However, should the price move below and close below the 38.2% fib level, further downward movements is expected. Basically, this downward movements can only go up to the key level 116.21.