USD/JPY: Wave Analysis Report 14 May 2021

EnclaveFX Ltd
May 14, 2021

The pair is in a correction, a fall is possible.

On the daily chart, the first wave of the higher level (1) of C develops, within which the third wave 3 of (1) forms. Now, the first wave of the lower level i of 3 developed, and a downward correction is forming as the second wave ii of 3, within which the wave (а) of ii has formed, and the wave (b) of ii is ending. If the assumption is correct, after the end of the correction, the pair will fall to the levels of 106.74–105.76. In this scenario, critical stop loss level is 110.97.

Main Scenario

Short positions will become relevant during the correction, below the level of 110.97 with the targets at 106.74–105.76. Implementation period: 7 days and more.

Alternative Scenario

The breakout and the consolidation of the price above the level of 110.97 will let the pair grow to the levels of 112.22–113.62.


Timeframe: Weekly

Recommendation: Sell

Entry Point: 109.52

Take Profit: 106.74, 105.76

Stop Loss: 110.97

Key Levels: 105.76, 106.74, 110.97, 112.22, 113.62

Alternative Scenario

Timeframe: Weekly

Recommendation: Buy Stop

Entry Point: 111.00

Take Profit: 112.22, 113.62

Stop Loss: 110.40

Key Levels: 105.76, 106.74, 110.97, 112.22, 113.62


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