04 May 2016, USD/JPY
USD/JPY is currently Trading with a bullish bias. Yesterday, the pair broke above the descending channel and is currently headed to the upper side. Following this upward thrash, we are very reluctant to go short instead, we are waiting for a clear breakout above 107.42 to push the price to the upper side towards 107.80. A clear breakout above 107.91 will push the price further to the upper side. During this intraday, key level are seen at 110.96, 109.95, 109.10, 107.80, 106.34 and 105.5. This pair should be traded alongside EUR/JPY, USD/CHF, USD/CAD, and EUR/AUD. These pairs have a strong positive correlation of up to +0.89 and will likely have a similar price action during this intraday. Only buy or sell usd/jpy if the other pairs are giving the same signal.
Wait for a clear breakout above 107.42 to go long with you first target at 107.80. A clear breakout above this level will push the price further to the upper side with the next target at 109.10. Only sell upon a clear rebound from 107.80, or a clear breakout below 106.34.