USD/JPY: wave analysis
The pair can grow.
On the 4-hour chart, the downward momentum has formed as a wave C within the correction of the higher level (B). Now the development of the wave (C) has begun, within which the first wave of the lower level (i) of i has formed, and the downward correction (ii) of I has ended. If the assumption is correct, the pair will grow to the levels of 108.65–109.60. The level of 105.40 is critical for this scenario.
Main scenario
Long positions will become relevant during the correction, above the level of 105.40 with the targets at 108.65–109.60.
Alternative scenario
The breakdown and the consolidation of the price below the level of 105.40 will let the pair go down to the levels of 104.50–103.50.
Trade
Scenario
Timeframe Weekly
Recommendation BUY
Entry Point 105.75
Take Profit 108.65, 109.60
Stop Loss 104.80
Key Levels 103.50, 104.50, 105.40, 108.65, 109.60
Alternative scenario
Recommendation SELL STOP
Entry Point 105.30
Take Profit 104.50, 103.50
Stop Loss 105.90
Key Levels 103.50, 104.50, 105.40, 108.65, 109.60
On the 4-hour chart, the downward momentum has formed as a wave C within the correction of the higher level (B). Now the development of the wave (C) has begun, within which the first wave of the lower level (i) of i has formed, and the downward correction (ii) of I has ended. If the assumption is correct, the pair will grow to the levels of 108.65–109.60. The level of 105.40 is critical for this scenario.
Main scenario
Long positions will become relevant during the correction, above the level of 105.40 with the targets at 108.65–109.60.
Alternative scenario
The breakdown and the consolidation of the price below the level of 105.40 will let the pair go down to the levels of 104.50–103.50.
Trade
Scenario
Timeframe Weekly
Recommendation BUY
Entry Point 105.75
Take Profit 108.65, 109.60
Stop Loss 104.80
Key Levels 103.50, 104.50, 105.40, 108.65, 109.60
Alternative scenario
Recommendation SELL STOP
Entry Point 105.30
Take Profit 104.50, 103.50
Stop Loss 105.90
Key Levels 103.50, 104.50, 105.40, 108.65, 109.60
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