04 September 2015, USD/JPY
USD/JPY is currently trading with a bearish Bias. The pair bounced off from the 50.0% fib level and is currently trading below the 61.8% fib level, as long as the pair trades below this fib level, short positions are recommended but with the first stop at 118.28, and the next stop at 116.13. 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.
Since the current wave is strongly bearish, as long as the pair trades below the 61.8% fib level, short positions are recommended but with the first stop at 118.28, and the next stop at 116.13. should the price close below the lower trend line, further short positions will be ideal. At this trend line, traders should also watch out for buy positions should the pair give a clear bounce scenario.