USDJPY Elliot Waves Analysis For 17 February 2016
17 February 2016, USD/JPY
USDJPY is currently trading with a bearish bias. Tthe intraday support 114.1 has been broken, and there is an extension to the downside. There are possibilities that a breakout below 113.5 will push the market further low to 111.33, to form a double bottom with that support level. In the meantime, it is recommended to sit on the sidelines and only sell below 113.5 with your ultimate target at 111.33. This pair should be traded alongside other positively correlated pairs such as USD/CHF and NZD/JPY. These pairs have a strong positive correlation of up to +0.85. Thus they are 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.
Conservative traders should sit on the sidelines and only sell below 113.5 with their ultimate taregt at 111.33. Only an upward correction above 114.3 will challenge this view.
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