On the sidelines | 20 December 2017

20 December 2017, USD/JPY

Wave Analysis:

Even after the end of the corrective wave (b) along the upper resistive trend line, the US Dollar is yet to pick any serious momentum to the lower side. We expect the upward rally that was seen few days ago to be a mere correction and should not go beyond the upper trend line, where we'll be looking to resell the impulsive wave (c) to the lowerside. On the chart above, its good to remain on the sidelines and wait for a clear sell signal. This pair has a strong positive correlation to CADJPY, CHFJPY, NZDJPY and AUDJPY. These pairs will move in the same direction during this intraday. Only buy or sell the Us dollar if the other positively correlated pairs are giving the same signal.

Trade Recommendations:

On the sidelines

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Bob Stan
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