USDJPY – Down Wave Analysis Following the bearish engulfing candle witnessed on 18th Oct 2016 at 16:00, the pair fell relentlessly to the lower side but could not go beyond the lower trend line. During this intraday, we expect to continue short with the impulsive wave (c), that the current upward rally is a mere correction of the current motive wave (c) and should not go beyond the resistance level $104.0. This view can only be invalidated in case the current correction end up breaking above $104.01. If this is the case, then expect a possible count to the upper side. Trade this pair alongside USD/CHF; these pairs have a strong positive correlation +85% and will have a similar price action during this intraday. Usd/chf is pretty much bearish and may head to the lower side, thus, expect similar bearish movement in usd/jpy. Trade Recommendations: If you’re not short already, wait and sell from $104.01.
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