13 January 2016, USD/JPY
USD/JPY is currently trading with a bullish bias. during the previous trading day, usd/jpy found a support along the zone 117.1 and 117.3. The current upward movement is a continuation of wave (4) with an ultimate target at 188.77, a break above this level would mean wave (4) will likely be headed further long but should not go above 120.63. In case of a clear price rejection from 188.77, we will be keen to go short with an ultimate target at a monthly support 116.00. This pair should be traded alongside other positively correlated pairs such as NZD/USD, NZD/JPY and GBP/JPY. These pairs have a strong positive correlation of up to +0.96 and are thus expected to have a similar price patterns. Only buy or sell usd/jpy if all the other positively correlated pairs are giving the same signal.
As long as the intraday stochastic trades above its neutrality level of 50, remain long with an ultimate target 188.77. In case of a clear rejection from 118.77, then sell with an ultimate target at 116.00