USD/JPY: wave analysis 16 August 2018, 09:48

USD/JPY: wave analysis

16 August 2018, 09:48

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	110.82
Take Profit	109.93, 109.35
Stop Loss	111.42
Key Levels	109.35, 109.93, 111.42, 113.22

Alternative scenario
Recommendation	BUY STOP
Entry Point	111.50
Take Profit	113.22
Stop Loss	110.90
Key Levels	109.35, 109.93, 111.42, 113.22

The correction develops, the pair can decrease.
On the 4-hour chart, correction of the higher level forms as a wave 2 of (C), taking a shape of an irregular flat. Now the wave c of 2 is forming, within which the fourth wave of the lower level the wave (iv) of c has ended, and the development of the wave (v) of c has begun. If the assumption is correct, the pair will fall to the levels of 109.93–109.35. The level of 111.42 is critical and stop loss for this scenario.


Main scenario
Short positions will become relevant during the correction, below the level of 111.42 with the targets at 109.93–109.35. Implementation period: 5–7 days.
Alternative scenario
The breakout and the consolidation of the price above the level of 111.42 will let the pair grow to the level of 113.22.