Elliott waves analysis – Bears on the lead

USDJPY – Down

Bears on the lead

Wave Analysis:

The US Dollar continues to decline after breaking below 108.13 and is still very bearish, both on the 4 hour and the daily charts. Following the close below 108.13, we expect further bearish extension with an ultimate target at 100.90 or even lower. According to the current chart set and structures, bears seems top have taken a full control of this market and therefore, only a short position can be recommended. This pair should be traded alongside CADJPY, HKDJPY, GBPJPY, AUDJPY and NZDJPY. These pairs a strong positive correlation of up to +70% and will move in the same direction today.

Trade Recommendations:

Remain short with an ultimate target at 100.90

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