Remain long | 23 يناير 2018

Wave Analysis:

During the previous trading day, we saw a slight extension of the impulsive wave (5) to the lower side but could not go below 110.39. This is a key 4 hour support level and as long as it protects the lower side we expect a rally to the upper side. This upward rally is the unfolding of a corrective three wave cycle and should not go beyond the resistance level 112.40. Should the price go below 110.39, then we expect a possible bearish momentum towards 108.00 or even lower. This pair should be traded alongside CADJPY, CHFJPY, AUDJPY and NZDJPY. These pairs have a strong positive correlation of up to +62% and will move in the same direction today.

Trade Recommendations:

Remain long