Bears coming soon | 27 Oktober 2017

27 Oktober 2017, USD/JPY

Bears coming soon

Wave analysis.

In the previous intraday, the USDJPY pulled back again to the upper trend line of the equidistant channel but ended up closing within this channel. We expect a rejection from this upper trend line and an extension of the impulsive wave (E) downwards towards the lower trend line of this channel. If price breaks above the upper trend line, this bearish price rally may be invalidated. Wait for a rejection from the upper trend line to short this pair towards 106.09.This pair should be traded alongside CADJPY, NZDJPY, AUDJPY and CHFJPY. These pairs have a strong positive correlation and will move in the same direction during this intraday.

Trade recommendation.

Sell USDJPY towards 106.09.

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Bob Stan
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