03 September 2015, USD/JPY
USD/JPY is currently trading with a bullish bias. The pair moved upwards and hit the 50.0% fib level, and is currently correcting itself downwards. As long as the pair trades below this fib level short positions are recommended. We however anticipate that the pair will possible cross the 50.0% fib level and also close above the 61.8% fib level by the close of this business week. However, should the current wave move downwards and close below the 38.2% fib level, then short positions are further recommended up to the support level 116.27. This pair is strongly positively correlated up to to +0.94 to other pairs such as GBP/JPY, AUD/JPY, US Dollar index and are expected to move in the same direction. Thus, only sell or buy the pair if the other positively correlated pairs above, are giving the same signal.
As long as the current wave continues to rally downwards below the 50.0% fib level, short positions are recommended. Any further clear movements below the 38.2% fib level will signal movements below possible up to the key support 116.27. This technical view point can only be challenged should the price move up and close above the 61.8% fib level.