08 September 2015, USD/JPY
USD/JPY is currently trading with a bearish Bias. The pair failed to hit a key resistance level 119.67, and is currently trading below it, and also below the 38.2% fib level. As long as the pair trades below this level, short positions are recommended but with the first stop at 118.29, and the next stop at 116.21, any movements below this level will signal further movements below. However, should the current wave shift upwards and close above the 38.2% fib level, long positions will be recommended but with stops at the 50.0% fib level and the far upper Resistance trend line. Traders trading this pair should observe other pairs such as CAD/CHF, CAD/JPY and SGD/JPY for positive correlation. These pairs have had a strong positive correlation of up to +0.95 with USD/JPY for the past few days, this positive correlation is expected to continue.
As long as the pair trades below the key level 119.67, short positions are recommended. Traders willing to sell this pair should wait for the current wave to retrace upto this level then sell, or sell below 118.29 up to the level 116.21.