USDJPY Elliot Waves Analysis For 29 April 2016 | 29 April 2016

Wave Anlysis:

USD/JPY is currently trading with a bearish bias. Yesterday, the pair traded massively short and even broke below a key support level 107.80. Following this break, we are very reluctant to go long, instead, we sit on sidelines and wait for a retracement towards the just broken level 107.80 to continue short with our next target at 105.39. Ideally, we expect a continuation of wave(c) to the lower side with a target at 105.39. During this intraday, key levels are seen at 105.39, 107.80, 109.10, and 109.84. This pair should be traded alongside GBP/JPY, EUR/JPY, AUD/JPY. These pairs have a strong positive correlation of up to +0.95 and will have a similar price action during this intraday.

Trade Recommendations:

If you are not short already, sit on sidelines and wait for a minor retracement towards 107.80 to go short with your target at105.39. Only buy if the anticipated pullback breakout clearly above 107.81.