USDJPY Elliot Waves Analysis For 19 July 2016 | 19 Juli 2016

Wave Analysis

USD/JPY is currently trading with a bearish bias. Yesterday, the pair traded long but ended up rebounding from 106.17. The level 106.17-106.51 is a key daily resistance level and will require a lot of force to break through. Thus, as long as the pair trades below 106.51, we expect a possible bearish reversal to go short with an ideal target at 103.99. A clear breakout above 106.51 will culminate into a possible bullish price movements but should not go beyond 109.36. This pair should be traded alongside EUR/JPY, AUD/JPY, NZD/JPY, CAD/JPY and GBP/JPY. These pairs have a strong positive correlation of up to +0.86 and will have a similar price action during this intraday.

Trade Recommendations:

Expect a possible bearish price rally towards 103.99. Buy orders are only recommended above 106.51 with an ideal target at 108.97.