29 April 2016, USD/JPY
USD/JPY is currently trading with a bearish bias. Yesterday, the pair traded massively short and even broke below a key support level 107.80. Following this break, we are very reluctant to go long, instead, we sit on sidelines and wait for a retracement towards the just broken level 107.80 to continue short with our next target at 105.39. Ideally, we expect a continuation of wave(c) to the lower side with a target at 105.39. During this intraday, key levels are seen at 105.39, 107.80, 109.10, and 109.84. This pair should be traded alongside GBP/JPY, EUR/JPY, AUD/JPY. These pairs have a strong positive correlation of up to +0.95 and will have a similar price action during this intraday.
If you are not short already, sit on sidelines and wait for a minor retracement towards 107.80 to go short with your target at105.39. Only buy if the anticipated pullback breakout clearly above 107.81.
Do you have any suggestions to make our website better? Have you noticed an error on the site? Tell us