04 August 2016, USD/JPY
USD/JPY is currently trading with a bullish bias. Yesterday, the pair retraced to the upper side but could not close beyond 101.49. As long as the zone 101.49-101.31 protects the upper side, we expect a bearish reversal from this retracement zone to go short with an ideal target at 99.03. This view can only be rendered futile in case the pair close above 101.49, if the latter the case, then we expect a possible bullish price movements towards 103.98. This pair should be traded alongside EUR/JPY, CAD/JPY, NZD/JPY and AUD/JPY. These pairs have a strong positive correlation of up to +0.96 and will have a similar price action during this intraday.
As long as the zone 101.49-101.31 protects the upper side, look for short positions with an ideal target at 99.033. Buy positions are only recommended in case the price clearly close above the zone 101.31-101.49.