USD/JPY below the support 104.01 | 02 November 2016

Wave Analysis

Yesterday, the impulsive wave (c) fell relentlessly and even broke below our anticipated support level $104.01. We expect the just broken level to act as a resistance to any developments to the upper side. As long as the level $104.01 protects the upper side, we expect to continue with the impulsive wave (c) towards the 161.8 Fib level or even lower. This view can only be invalidated incase the pair end up breaking above $104.13. Expect a similar wave count in USD/CHF, EUR/JPY and an exact opposite wave count in EUR/USD and GBP/USD. The latter pairs have a strong negative correlation to the first three pairs, usd/jpy, usd/chf and eur/jpy.

Trade Recommendations:

As long as the pair trades below $104.01, look for potential short positions with an ideal target at $103.09