USDJPY Elliot Waves Analysis For 19 February 2016
19 February 2016, USD/JPY
USD/JPY is currently trading with a slight bearish bias. During the previous trading day, wave(b) traded short and is yet to reach our target at 112.38. We still expect further movements to this level before we can go long with wave (c). We will thus remain short but only up to 112.38. A breakout below 112.38 will call for further short positions with a target at the daily support level 111.33. This pair should be traded alongside other positively correlated pairs such as NZDJPY, NZD/CHF and GBP/JPY. These pairs have a strong positive correlation of up to +0.84 and are thus expected to have a similar price action. Only buy or sell usdjpy if all the other positively correlated pairs are giving the same signal.
In the meantime, remain short but only up to 112.38, a clear break below it will call for further short positions with your target at 111.33. Look to buy upon a clear bounce from either 112.38 or 111.38 with your ultimate target at 116.14
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