10 June 2016, USD/JPY
USD/JPY is currently trading with a bullish bias. Yesterday, the pair tested the support level 106.57, headed long but is yet to reach our target resistance level 107.37. We still expect further movements to the upper side towards 108.59 or even further to 109.59. Ideally, the anticipated upward rally should be the correlation of the massive downward rally witnessed during the NFP results release on 3rd June 2016. This pair should should be traded alongside EUR/JPY, USD/CHF, USD/CAD and GBP/JPY. These pairs have a strong positive correlation of up to +0.92 and will have a similar price action during this intraday.
If you are not long already, wait for a clear breakout above 107.37 then go long with your target at 108.58. A clear rebound from 107.37 will mean looking for short positions with an ideal target at 106.57 and 105.70.
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