24 May 2016, USD/JPY
USD/JPY is currently trading with a bearish bias. Yesterday, this pair traded short for the better parts of the day and even broke below the supportive level 109.34. As long as the pair trades below this level, we expect an acceleration to the lower side but should not go below 108.58. This downward rally is highly anticipated since the intraday stochastic is retracing from its near overbought level of 80 and may turn around upon reaching its neutrality level of 50. This pair should be traded alongside GBP/JPY, EUR/JPY, and HKD/JPY. These pair have a strong positive correlation of up to +0.87 and will have a similar price action during this instraday.
As long as the level 109.34 protects the upper side, look for short positions with your targets at 108.35. A clear breakout below this target will call for further short positions.