USDJPY Elliot Waves Analysis For 19 August 2016 | 19 August 2016

Wave Analysis:

USD/JPY is currently trading with a bullish bias. Yesterday, wave (c) traded to the lower side as forecasted but is yet to reach our target at 99.033. During this intraday, we still expect further movements to our previous target but only after a clear bearish reversal from 100.73. This view can only be invalidated if the current upward pullback end up breaking above 100.91. If the latter is the case, then we expect a possible bullish price rally towards 102.44 but should not go beyond 104.37. This pair should be traded alongside NZD/JPY, CAD/JPY, and AUD/JPY. These pairs have a strong positive correlation of up to +0.92 and will have a similar price action during this intraday.

Trade Recommendation:

If you are not short already, wait for the current upward pullback to rebound along 102.73-100.91 then go short with an ideal target at 99.033. Buy positions are only recommended above 100.91 with an ideal target at 102.44.