USD/JPY: wave analysis

The pair may grow.

On the 4-hour chart, the third wave iii develops within the first wave of the higher level 1 of (C). Now, the first wave of the lower level (i) of iii of 1 has formed, and a local correction has ended as the wave (ii) of iii. If the assumption is correct, the pair will grow to the level of 110.50. In this scenario, critical stop loss level is 108.23.

Main scenario

Long positions will become relevant during the correction, above the level of 108.23 with the target at 110.50. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price below the level of 108.23 will let the pair go down to the levels of 107.42–106.46.

Scenario

Timeframe Intraday
Recommendation BUY
Entry Point 108.83
Take Profit 110.50
Stop Loss 108.23
Key Levels 107.42, 107.42, 108.23, 110.50

Alternative scenario

Recommendation SELL STOP
Entry Point 108.20
Take Profit 107.42, 107.42,
Stop Loss 108.55
Key Levels 107.42, 107.42, 108.23, 110.50