USD/JPY is currently trading with a bearish bias. The pair continues short despite the exhaustion witnessed during yesterday's intraday. In the meantime, we remain short in this pair but with a stop at 120.304. This is a very significant key level, and we may buy at this level as long as other positively correlated pairs such as NZD/JPY and GBP/JPY are giving the same signal. This downward movement is highly anticipated since the intraday stochastic indicator is trading below the 50 level but above 20. We expect it to be below 20 when the price reaches around 120.30 thus giving as a clear buy signal.
In the meantime, we remain short, but with tp at 120.304. We may also buy along the same level as long as other positively correlated pairs are giving the same signal. Buy positions can also be potentially at the lower support trend line.