28 July 2017, USD/JPY
Wave Analysis
Following the end of the corrective wave (4) around 112.003, the impulsive wave (5) traded on the lower side and is still pretty much bearish both on the daily and weekly charts. During this intraday and also on the coming week, we expect a possible extension of this impulsive wave count towards the daily support level 108.40 but should not go beyond 104.00. If the latter is broken, then the price could extend even lower. This downward rally is highly anticipated but if the price can pullback towards 112.003, then this will be the best place to pick a short positions. Expect a similar wave count in USDCHF, CADJPY, NZDJPY and CHFJPY. These pairs have a strong positive correlation of up to +71%and will move in the same direction.
Trade Recommendations:
We're short towards 108.40