USD/JPY: wave analysis 07 December 2018, 08:37

USD/JPY: wave analysis

07 December 2018, 08:37

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	112.84
Take Profit	111.35
Stop Loss	113.83
Key Levels	111.35, 113.83, 115.50

Alternative scenario
Recommendation	BUY STOP
Entry Point	113.90
Take Profit	115.50
Stop Loss	113.30
Key Levels	111.35, 113.83, 115.50

The pair may fall.
On the 4-hour chart, a local downward correction of the higher level develops as the wave 2 of (C). Now the wave c of 2 is forming, within which the third wave of the lower level (iii) of c is developing. If the assumption is correct, the pair will fall to the level of 111.35. In this scenario, critical stop loss level is 113.83.


Main scenario
Short positions will become relevant during the correction, below the level of 113.83 with the target at 111.35. Implementation period: 7 days and more.
Alternative scenario
The breakout and the consolidation of the price above the level of 113.83 will let the pair grow to the level of 115.50.