USD/JPY is currently trading with a bullish bias. During the 23rd, the pair traded long for the better parts of the day but could not close above a key resistive level 121.70 forming part of its equilibrium zone (118.44 and 121.707). We expect further movements upwards probably a break of this resistance trend line, ideally, wave (c) should close above wave (a), which means we anticipate a break above this zone, otherwise we are short. This upward movement is corroborated with then fact that, GBP/PLN, a positively correlated pair is bouncing off a very strong support level 5.9080, which means upward movement is highly likely in both pairs. We however look to buy above 121.707, or in case of a rejection at this level, we will sell.
Buy above 121.707, but with stops at 122.46, and the next stop at 123.38. In an alternative scenario, should the pair get rejected at this level, 121.707, then sell, but with stop at 120.55, and the next stop at 119.93.