US Dollar continues to sustain the break below 111.78 | 28 مارس 2017

As previously forecasted, the corrective inner wave (ii) could not go beyond 111.78. As long as the price remains below 111.78, we expect a possible bearish price movements towards 108.94 or even lower. The anticipated downward rally is the continuation of the impulsive wave (iii) and should be extensive wave in nature. This downward rally is highly anticipated since other positively correlated pairs such as CADJPY, and NZDJPY, equally broke below key levels and will head further to the lowerside. As long as these pairs remains bearish, we choose to remain short in USDJPY. These pairs have a strong positive correlation of up to +85% and will move in the same direction during this intraday.