08 November 2016, USD/JPY
Yesterday, usd/jpy gapped above a key resistance level 104.01 and is currently retracing towards it. We expect this resistance level to act as a support to any downward rally, thus, instead of selling the corrective wave (c), we choose to sit on the sidelines and wait for the current downward rally to end around 104.01 then buy the impulsive wave (c) towards 105.34. We expect to trade this pair alongside USD/CHF, these two pairs have a strong positive correlation of up to +89% and will have a similar price action during this intraday. Only buy or sell usd/jpy if usd/chf is showing the same signal.
Wait for a clear rebound from 104.01 to go long with an ideal target at 105.34. Sell positions are only recommended below 103.93 with an ideal target at 102.74.
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