USD/JPY: wave analysis 28 May 2019, 09:34

USD/JPY: wave analysis

28 May 2019, 09:34

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	109.50
Take Profit	108.42, 107.50
Stop Loss	110.10
Key Levels	107.50, 108.42, 110.69, 112.40, 114.44

Alternative scenario
Recommendation	BUY STOP
Entry Point	110.75
Take Profit	112.40, 114.44
Stop Loss	110.15
Key Levels	107.50, 108.42, 110.69, 112.40, 114.44

The pair is in a correction, a fall is possible.
On the 4-hour chart, the third wave of the higher level 3 of (C) develops, within which the wave i of 3 formed. Now, a local correction is developing as the wave ii of 3, within which the wave (a) of ii of the lower level has formed, and a local correction has ended as the wave (b) of ii. If the assumption is correct, the pair will fall within the wave (c) of ii to the levels of 108.42–107.50. In this scenario, critical stop loss level is 110.69.


Main scenario
Short positions will become relevant during the correction, below the level of 110.69 with the targets at 108.42–107.50. Implementation period: 5–7 days.
Alternative scenario
The breakout and the consolidation of the price above the level of 110.69 will let the pair grow to the levels of 112.40–114.44.