Elliott waves for Forex correlation analysis – Key support at 110.91

USDJPY – Down Wave Analysis:: As expected corrective wave (4) continue to retrace to the lower side but should not go beyond the support level 111.32. We expect this support level to mark the end of the corrective wave (4), from where we’ll be looking for low risk buy opportunities, to buy the motive wave (5)with an ideal target at 124.25. As long as the level 111.32 limits any downward aggression, we expect a possible bullish wave count from this level to go long towards 124.03 and possible higher. Expect a similar wave count in USD/CHF, USD/CAD, and EUR/JPY. These pairs a have a strong positive correlation of up to +89% and will have a similar price action during this intraday. Only buy or sell the US Dollar if the other pairs are giving the same signal. Trade Recommendations: Expect a possible rebound from 111.32 to go long with an ultimate target at 124.03.
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