Best Fx Strategy

USD/JPY: wave analysis

26 January 2021, 10:16

Scenario
Timeframe	Weekly
Recommendation	BUY
Entry Point	103.80
Take Profit	105.00, 105.31
Stop Loss	103.30
Key Levels	101.50, 102.58, 103.30, 105.00, 105.31

Alternative scenario
Recommendation	SELL STOP
Entry Point	103.25
Take Profit	102.58, 101.50
Stop Loss	103.50
Key Levels	101.50, 102.58, 103.30, 105.00, 105.31

The pair is in a correction and may grow.

On the daily chart, the third wave of the higher level 3 of (C) develops, within which the wave iii of 3 formed. Now, an upward correction has started to develop as the fourth wave iv of 3, within which the wave (a) of iv has formed, and the wave (b) of iv has ended. If the assumption is correct, the pair will grow within the wave (c) of iv to the levels of 105.00–105.31. In this scenario, critical stop loss level is 103.30.

Main scenario

Long positions will become relevant during the correction, above the level of 103.30 with the targets at 105.00–105.31. Implementation period: 7 days and more.

Alternative scenario

The breakdown and the consolidation of the price below the level of 103.30 will let the pair go down to the levels of 102.58–101.50.