USDJPY is currently trading with a bullish bias. During the previous trading day, usd/jpy rebounded from the supportive trend line and is currently heading long as previously forecasted. Although we anticipate an upward rally towards 116.75, we will sit on the sidelines and only go long upon a clear break above 114.68. Ideally, we expect wave (c) to go long to 116.75 or even further to 117.01. This pair should be traded alongside other positively correlated pairs such as GBP/JPY, EUR/JPY, and CAD/JPY. These pairs have a strong positive correlation of +0.89 and are thus expected to have a similar chart set ups. Only buy or sell usd/jpy if all the other positively correlated pairs are giving the same signal.
The level 114.68 remains to be a significant demand level, thus, a break above this level will call for further long positions with an ideal target at 116.75