USD/JPY: wave analysis

The pair is in a correction and may grow.

On the 4-hour chart, the third wave iii within the first wave of the higher level 1 of (C) develops. Now, the first wave of the lower level (i) of iii of 1 has developed, and a local correction is developing as the wave (ii) of iii. If the assumption is correct, after the end of the correction, the pair will grow to the levels of 110.50–112.32. In this scenario, critical stop loss level is 107.71.

Main scenario

Long positions will become relevant after the end of the correction, above the level of 107.71 with the targets at 110.50–112.32. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price below the level of 107.71 will let the pair go down to the levels of 106.42–104.43.

Scenario

Timeframe Weekly
Recommendation BUY
Entry Point 108.60
Take Profit 110.50, 112.32
Stop Loss 107.71
Key Levels 104.43, 106.42, 107.71, 110.50, 112.32

Alternative scenario

Recommendation SELL STOP
Entry Point 107.65
Take Profit 106.42, 104.43
Stop Loss 108.25
Key Levels 104.43, 106.42, 107.71, 110.50, 112.32