05 August 2016, USD/JPY
USD/JPY is currently trading with a bearish bias. Yesterday, the pair didn't make any significant move but as can be observed, the pair is still below a key pivot level 101.49. There are no changes in our technical outlook, we still expect a quick bearish decline towards 99.03 as long as the level 101.31-101.49 plays a key resistance role. A clear breakout above 101.49 will lead to a possible bullish price rally towards 103.98 or even higher. This pair should be traded alongside NZD/JPY, CAD/JPY, EUR/JPY, AUD/JPY 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.
As long as the pair trades below its pivot level 101.49, it is likely to trade in the lower ranges with an ideal target at 99.033. Buy positions are only recommended above 101.49 with a target at 103.94.