Bearish momentum developing
01 November 2016, USD/JPY
Yesterday, the motive wave (a) retraced lower than expected and even tested the 61.8 Fib level. We expect the level $105.22 to have marked the end of the corrective wave (b) that the current downward rally is the unfolding of the impulsive wave (c) towards the support level $104.01. This downward rally is highly anticipated since the other negatively correlated pairs, GBP/USD and EUR/USD are pretty much bullish and will likely continue long. This means, as long as the two latter pairs remain bullish, we look for potential short positions in Usd/jpy. These pairs have a strong negative correlation of up to -74% and will have an exact opposite price action during this intraday.
Remain short with an ideal target at 104.01
Do you have any suggestions to make our website better? Have you noticed an error on the site? Tell us