Short | 30 October 2017

Wave analysis.

Last week, USDJPY closed above the upper trend line of the channel which it had been trading within for months. However, price is still below the weekly resistance level 113.96. If this resistance level 113.96 protects the upper side completely, we expect a bearish price rally towards 106.09.This will mark the end of the corrective wave (D) and the beginning of the impulsive wave (E).If this weekly resistance level is broken, the corrective wave (D) may extend further up towards 118.50. Look for a short position to sell this pair with your target at 106.09.Trade this pair alongside CADJPY, NZDJPY, AUDJPY and CHFJPY. These pairs have a strong correlation and will move in the same direction during this intraday.

Trade recommendation

We are still short towards 106.09.