03 March 2016, USD/JPY
USD/JPY is currently trading with a bullish bias. During the previous trading day, usd/jpy bounced from 114.04, headed short, and has just retraced back to this level during this intraday. Instead of going long immediately, we will wait for a close above 114.60 to mark the continuation of the upward rally, otherwise, there are chances the pair may rebound from 114.04 and head even further short. This pair should be traded alongside other positively correlated pairs such as GBP/JPY, CAD/JPY, and EUR/JPY. These pairs have a strong positive correlation of up to +0.86 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.
Wait for a clear close above 114.60 to mark the continuation of the upward rally, otherwise. A clear rebound from 114.04 will mark the continuation of the downward rally with an ideal target at 112.03