23 May 2016, USD/JPY
USD/JPY is currently trading with a slight bullish bias. During the previous trading day on 20th May 2016, the pair traded short and even hit our first target at 109.62. The pair is still pretty much bearish and may continue to the lower side. Following the downward rally witnessed during the previous trading day, we are very reluctant to go long instead we expect the current upward rally to me a mere retracement and should not go above 109.95 from where we'll look to continue short with our ultimate target at 108.58. This pair should be traded alongside EUR/JPY, GBP/JPY, USD/CHF, and EUR/AUD. These pairs have a strong positive correlation of up to +0.96 and will likely have a similar price action during this intraday.
If you are not short already, wait for the current upward pullback to end along 109.95, then go short with your targets at 109.34 and 108.58. Buy positions are only recommended above 109.95, or upon a clear rebound from either 109.62, 109.34 or 108.58.
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