USD/JPY: Wave Analysis Report 23 Feb 2021

Feb 23, 2021

The pair is in a correction and 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, and a local correction is developing as the wave ii of 3. If the assumption is correct, after the end of the correction 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.


 Timeframe: Weekly

Recommendation: Buy

Entry Point: 105.03

Take Profit: 109.86, 111.68

Stop Loss: 102.56

Key Levels: 98.60, 101.07, 102.56, 109.86, 111.68

 Alternative Scenario

 Timeframe: Weekly

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