USD/JPY is currently trading with a slight bearish bias. During the previous trading week, usd/jpy traded perfectly long and ended up finding a resistant along the upper trendline forming top of the rising channel. We anticipate that the current downward movements is the unfolding of wave (4) towards 118.08 or even further lower. Thus, we will look to buy from 118.08 with our ultimate target at 119.60. This pair should be traded alongside other pairs such as USD/DKK, USD/CHF, NZD/JPY, NZD/CHF, CAD/JPY and AUD/CHF. These pairs have a strong positive correlation of up to +0.94 and are thus expected to have a similar price pattern. Only buy or sell usd/jpy if all the other positive correlated pairs are giving the same signal.
Remain short with your target at 118.08, or even lower at 117.92.