USD/JPY: Wave Analysis Report 18 May 2021

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By Admin

18 May 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 has 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 has ended, and the development of the wave (c) of ii has started. If the assumption is correct, the pair will fall to the levels of 107.48–106.74. In this scenario, critical stop loss level is 109.82.

Main Scenario

Short positions will become relevant during the correction, below the level of 109.82 with the targets at 107.48–106.74. Implementation period: 7 days and more.

Alternative Scenario

The breakout and the consolidation of the price above the level of 109.82 will let the pair grow to the levels of 110.96–112.22.

Scenario

Timeframe: Weekly

Recommendation: Sell

Entry Point: 109.17

Take Profit: 107.48, 106.74

Stop Loss: 109.75

Key Levels: 106.74, 107.48, 109.82, 110.96, 112.22

Alternative Scenario

Timeframe: Weekly

Recommendation: Buy Stop