USDJPY Elliot Waves Analysis For 8 February 2016
08 February 2016, USD/JPY
USD/JPY is currently trading with a bearish bias. Since mid-last week usd/jpy found resistant at 121.40, the pair has continually traded short and even broke below to major daily support levels, 118.80 and 118.40. Following this downward movement, we are very reluctant to long, instead, we will be looking to remain short but with our target at 115.97. A break below 115.97 would mean we are headed further short but with our ultimate target at 112.32. This pair should be traded alongside other inversely correlated pairs such as NZD/CAD, EUR/TRY, and EUR/CAD. These pairs have a strong inverse correlation of up to -0.98 with usd/jpy and are thus expected to have an exact opposite price direction. Only buy or see usd/jpy if all the other negatively correlated signal are giving opposite signals.
Wait for a break below 116.69, then sell the pair but with your target at 115.97. Only buy upon a clear break above 117.73
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