09 June 2016, USD/JPY
USD/JPY is currently trading with a bullish bias. Yesterday, the pair traded short and ended up forming a double bottom at 106.57. As long as the level 106.57 holds true as a strong support level, we expect a rally to the upper side and may close above 108.58. The anticipated upward rally is supported by the fact that the intraday stochastic has already rebounded from its oversold level 20 and may break above its neutrality level of 50. Ideally, the anticipated upward rally should be the correction of the massive downward rally witnessed during the NFP on 3rd June 2016. This Pair should be traded alongside GBP/CHF, GBP/JPY, EUR/JPY, AUD/JPY, and USD/CHF. These pairs have a strong positive correlation of up to +0.92 and will have a similar price action during this intraday.
Remain long with your targets at 107.37 and 108.58. Sell positions are only recommended in case the price close below 106.47 with your ideal target at 105.70.