USD/JPY: wave analysis 19 February 2021, 08:40

USD/JPY: wave analysis

19 February 2021, 08:40

Scenario
Timeframe	Weekly
Recommendation	BUY
Entry Point	105.57
Take Profit	109.86, 111.68
Stop Loss	102.56
Key Levels	98.60, 101.07, 102.56, 109.86, 111.68

Alternative scenario
Recommendation	SELL STOP
Entry Point	102.50
Take Profit	101.07, 98.60
Stop Loss	103.10
Key Levels	98.60, 101.07, 102.56, 109.86, 111.68

The pair may grow.

On the daily chart, the first wave of the higher level (1) of C develops, within which the correctional wave 2 of (1) ended. Now, the development of the third wave 3 of (1) has started, within which the wave of the lower level i of 3 has formed. If the assumption is correct, after the end of the local correction ii of 3, the pair will grow to the levels of 109.86–111.68. In this scenario, critical stop loss level is 102.56.

Main scenario

Long positions will become relevant after the end of the correction, above the level of 102.56 with the targets at 109.86–111.68. Implementation period: 7 days and more.

Alternative scenario

The breakdown and the consolidation of the price below the level of 102.56 will let the pair go down to the levels of 101.07–98.60.