USD/JPY is currently trading with a bullish bias. We expect 115.97 to have marked the end of the five wave cycle, that the current upward movement is a corrective three wave cycle with wave (a) ending at 118.36. We will thus be looking to sell from 118.36 with our targets at 117.17 or even slightly below. This pair should be traded alongside other pairs such as ZAR/JPY, USD/CHF, NZD/JPY, GBP/JPY and GBP/CHF. These pairs have a strong positive correlation of up to +0.89, and are thus expected to have a similar price direction. Only buy or sell usd/jpy if all the other positively correlated pairs are giving the same signal.
Remain long with your target at 118.36. Sell from 118.36 with your targets at 117.17 or slightly below it.