USDJPY Elliot Waves Analysis For 11 May 2016 | 11 May 2016

Wave Analysis:

USD/JPY is currently trading with a bearish bias. Yesterday, the pair traded long as previous forecasted but could not close above 109.34. The downward rally witnessed earlier today is a mere retracement and should not go below 108.58. However, in case the pair ends up closing below 108.58, then we expect an acceleration to the lower side. As long long as the zone 108.65-108.58 protects the lower side, expect a possible rebound from this zone. This pair should be traded along EUR/JPY, GBP/JPY, USD/CHF, and AUD/JPY. These pairs have a strong positive correlation of up to +0.92 and will likely have a similar price action during this intraday.

Trade Recommendations:

As long as the zone 108.65-108.58 protects the lowerside, look for long long positions with your target at 109.34. A clear breakout below the zone will call for short positions with an ideal target at 107.91.