USD/JPY: wave analysis | FX Signals

USD/JPY: wave analysis25 January 2017, 09:22

Entry Point113.75
Take Profit111.58, 110.40
Stop Loss114.50
Key Levels110.40, 111.58, 115.47, 116.20
Alternative scenario
RecommendationBUY STOP
Entry Point115.50
Take Profit116.20
Stop Loss114.90
Key Levels110.40, 111.58, 115.47, 116.20

Downward trend is strong.
Assumingly, wave (C) of the higher level continues forming. Locally, a downward correction in wave ii seems to have finished and the third wave iii has started, within which a starting impulse (i) is formed. If the assumption is correct, the pair is expected to fall to the levels of 111.58, 110.40. Critical for this scenario is the level of 115.47.
Main scenario
Sell the pair below the level of 115.47 with targets at 111.58, 110.40.
Alternative scenario
The breakout and consolidation above the level of 115.47 would allow the pair to grow to 116.20 and above.