USD/JPY is currently trading with a bullish bias. During the course of the previous week ending on Thursday, USD/JPY traded short but ended up bouncing and forming a hammer, we believe this hammer will push the market upwards probably up to above 121.50. Any clear close below the low of this hammer will call for short positions with targets below 119.26
Traders trading this pair should observe closely other pair such as GBP/JPY, HKD/JPY, and AUD/USD . These pairs have a strong positive correlation of up to +0.95 and are thus expected to have a similar Price action. Only buy or sell USD/JPY if all the other positively correlated pairs are giving the same signal.
With price trading above the close of the hammer on the daily chart, remain long with targets above 121.50.