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USD in a pullback mode

17 November 2016, USD/JPY

USD in a pullback mode

Wave Analysis:

Yesterday, the US dollar rose as high as 109.74 but ended up closing at 109.06, just a few pips below it's opening price,109.17. This is a clear signal that this pair could be in a corrective mode but should not go beyond 108.39, any clear breakout below 108.39 may invalidate the anticipated upward rally and could culminate into a possible bearish wave count to the lower side. This is however, highly unlikely since the weekly chart is pretty much bullish and may be headed further to the upper side even during the coming week. Trade this pair alongside EUR/JPY and USD/CHF, these pairs have a strong positive correlation of up +74% to usd/jpy and will have a similar price action during this intraday. Only buy or sell usd/jpy if the other positive correlated pairs are giving the same signal.

Trade Recommendations:

If you're not long yet, wait for the current pullback to rebound from 108.39 to give you low risk buy opportunities with an ideal target at 110.46.

Graham Osano
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