USDJPY is currently trading with bearish bias. During the previous trading day, the pair retraced to the upper side but ended up rebounding from the level 109.06. We expect the current downward rally to be a continuation of the overall bearish trend with our ultimate target at 107.64. A break below this target will push the pair further to the lower side. However, as long as the level 107.98 protects the lower side, we will be keen to look for possible rebound from 107.79 to go long. This pair should be traded alongside AUD/JPY, EUR/JPY and GBP/JPY. These pairs have a strong positive correlation of up to +1 and will likely move in a similar direction during this intraday.
Remain short but only up to 107.64, a break below this level will call for further short positions with next ideal target at 105.47.