Sell usdjpy around 110.71-111.09 | 15 Agustus 2017

Since the beginning of this week, we've witnessed a massive correction of the previous five wave cycle with the price recovering almost 70% the value it lost during the unfolding of the impulsive wave (5). We expect this corrective wave to extend higher during this intraday but should not go beyond the daily resistance zone 110.71-110.09. If this resistance is broken, the price could rise further upwards 111.92; however, if this zone contains the price to the lower side, then we expect a rebound from this zone to short usdjpy towards 108.41. This pair should be traded alongside CHFJPY, USDCHF, and NZDJPY. These pairs will have a similar price action today.