Expect a possible bullish rebound around 115.38 | 10 January 2017

Wave Analysis:

Yesterday, our stop got taken out when the pair went below 116.46. The US Dollar then continued short, and is currently around a key demand level 115.38. We expect a possible rebound around this level to lead to an impulsive wave count to the upper side, otherwise, a break below 115.07 may invalidate a possible rebound around this level and could culminate into a bearish wave count towards 114.47 but should not go beyond 113.40. As long as CADJPY, NZDJPY, HKDJPY and AUDJPY remains bearish, we're short in USDJPY. These pairs have a strong positive correlation of up to +89% and will have a similar price action during this intraday. Only buy or sell USDJPY if the other positively correlated pairs are giving the same signal

Trade Recommendations:

Wait for a possible rebound around 115.3 to go long with your stop below 115.07. Sell positions are recommended upon a clear breakout below 115.00.