USD/JPY is currently trading with a bearish bias. During the previous trading day, the price pulled back towards 118.57 and is currently trading short. We expect wave (b) to remain short with an ultimate target at 117.17, where we will be looking to buy. This pair should be traded alongside other pairs such as NZD/JPY, NZD/USD, GBP/USD, GBP/JPY and GBP/CHF. These pairs have a strong positive correlation of up to +0.96 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 but only up to 117.17. Buy from 117.17 to 120.68