07 June 2016, USD/JPY
Wave Analysis
USD/JPY is currently trading with a bearish bias. Since the previous trading day, the pair has been making higher lows and even broke above 107.37. We expect the current upward rally to be a mere internal corrective move before we continue with the overall downward trend. Although we expect an ultimate downward rally in the long run, we will only go short in case the pair break below 107.37 and then below 106.49. In the meantime, as long as the pair remains bullish above 107.37, we expect an acceleration to the upper side but should not go above 109.03. This pair should be traded alongside GBP/JPY, EUR/JPY, and AUD/JPY. These pairs have a strong positive correlation of up to +0.96 and will have a similar price action during this intraday.
Trade Recommendation.
As long as the pair trades above 107.37, look for potential buy positions with your target at 109.03. A break below 107.37 will mean looking for short positions with an ideal target at 106.49 and 105.70.
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