USD/JPY is currently trading with a bearish bias. During the previous trading day, usd/jpy traded long, but found a resistant at 118.08. The current downward movement is the unfolding of wave (5) and is expected to continue short with an ultimate target at 116.14. Any upward retracements is likely to find a resistant at 117.17 before continuing short. This pair should be traded alongside other positively correlated pair such as NZD/JPY, GBP/JPY, GBP/CHF and CAD/JPY. These pairs have a strong positive correlation of up to +0.90, 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.
Remain short, or wait for a minor pullback towards 117.17 before going short with an ultimate target at 116.14