we're short | 03 January 2018

Wave Analysis:

Perfectly as previously forecasted, the impulsive wave (c) extended slightly to the lower side and is still pretty much bearish. During this intraday, we expect a possible extension of this impulsive wave to the lower side and should break below 110.70. As long as the price remains below the upper trend line, we expect the bears to dominate this market, we expect a massive drop with an ultimate target at 107.10. This view can only be invalidated in case the price end up above the upper trend line, this being the case, we expect an acceleration towards 118.80. This pair should be traded alongside CADJPY, CHFJPY, NZDJPY, HKDJPY and AUDJPY. These pairs have a strong positive correlation and will move in the same direction today.

Trade Recommendation:

We're short with our target at 107.10.