USD/JPY: wave analysis

The pair may grow.

On the 4-hour chart, the first wave 1 within the started wave (C) of the higher level develops. Now, the first wave of the lower level i of 1 of (C) has formed, and the local correction ii of 1 has ended, which has reached the correctional the level of 50%. If the assumption is correct, the pair will grow to the levels of 109.35–112.32. In this scenario, critical stop loss level is 106.44.

Main scenario

Long positions will become relevant during the correction, above the level of 106.44 with the targets at 109.35–112.32. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price below the level of 106.44 will let the pair go down to the levels of 104.43–103.50.

Scenario

  • Timeframe

    Weekly

  • Recommendation

    BUY

  • Entry Point

    107.19

  • Take Profit

    109.35, 112.32

  • Stop Loss

    106.44

  • Key Levels

    103.50, 104.43, 106.44, 109.35, 112.32

Alternative scenario

  • Timeframe

    Weekly

  • Recommendation

    SELL STOP

  • Entry Point

    106.40

  • Take Profit

    104.43, 103.50

  • Stop Loss

    107.05

  • Key Levels

    103.50, 104.43, 106.44, 109.35, 112.32