Remain long but not for long | 21 December 2017

Wave Analysis:

The US Dollar is slowly approaching the resistance trend line. This is a key resistance line and while it contains price below it, a rebound from this trend line is highly anticipated. If this trend line is broken, then we expect a possible bullish price movements towards 118.80 or even higher. At the moment, we expect a rebound from it, to short this pair with our target a long the lower trend line. The anticipated bearish price rally is barely the continuation of the impulsive wave (c) to the lower side and should not go beyond 108.00. This pair should be traded alongside CADJPY, CHFJPY, AUDJPY and GBPJPY. These pairs have a strong positive correlation and will move in the same direction today.

Trade Recommendations:

Expect a rebound from the upper trendline to short this pair towards 108.00. A break above, will call for a long position towards 118.80