12 May 2016, USD/JPY
USD/JPY is currently trading with a slight bullish bias. Yesterday, the pair traded short and even broke below the support zone 108.65-108.58. We expect the current upward rally to be a mere retracement and should not go beyond 10.65, thus, expect a possible rebound from the above zone to go continue short with our target at 108.37. A clear breakout above this zone will invalidate the anticipated downward rally and may lead to an acceleration towards 109.34. This pair should be traded alongside GBP/JPY, GBP/CHF, EUR/JPY and USD/CHF These pairs have a strong positive correlation of up to +0.89 and will have a similar price action during this intraday.
As long as the pair trades below the zone 109.65-108.58, look for short positions with your ultimate target at 107.37. Buy positions are only recommended above 108.65 with a target at 109.34.
We are constantly improving our website quality. If you have any suggestions on how to make our website better or noticed an error on the website, please tell us