02 June 2016, USD/JPY
USD/JPY is currently trading with a slight bullish bias. Yesterday, the pair traded short and even went below the daily support 109.59. We expect the just broken support to act as a resistance to any upward rally, thus, during this intraday, we will only remain long but only up to 109.59 from where we'll be looking to continue short with wave (5). This view remains valid as long as the level 109.59 protects the upper side, a clear break above this level will mean we are headed long with our target at 110.48. This pair should be traded alongside GBP/JPY, AUD/JPY, and USD/CHf. These pairs have a strong positive correlation of up to +0.83 and will have a similar price action during this intraday.
As long as the level 109.59 holds true as a strong resistance, expect possible rebound from this level to go short with your target at 108.58. Buy positions are only recommended above 109.59 with an ideal target at 110.48
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