USD/JPY is currently trading with a bearish bias. During the previous trading day, usd/jpy found resistance at 118.3, headed short and is currently trading just above a daily support of 117.34. We are waiting for a close below 117.14 to continue short with an ultimate target of 116.00. However, as along as 117.34 holds true as a strong support, we will be looking for a possible reversal at this level. This pair should be traded alongside other pairs such as NZD/CHF, 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 chart patterns. Only buy or sell usd/jpy if all the other positively correlated pairs are giving the same signal.
Remain short with a target 117.34. A close below 117.14 will mean we are headed further short with an ultimate target at 116.0. Otherwise, we will be long as along as the pair trades above 117.34