26 May 2016, USD/JPY
USD/JPY is currently trading with a slight bearish bias. Ealier today, the pair traded massively short but could not reach our target at 109.34, We expect the current upward rally to be a mere internal corrective move (wave 4) and should not break above 109.92. A possible rebound from 109.76 is highly likely for us to continue with wave (5) to the lower side. Ideally, this pair is in a downward trend and may close below 109.07. This pair should be traded alongside EUR/JPY, GBP/JPY and AUD/JPY. These pairs have a strong positive correlation of up to +0.98 and will have a similar price action during this intraday.
If you are not short already, wait for the current upward pullback to end along 109.76, then go short with your target at 109.072.
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