USD/JPY: wave analysis and forecast for 20/07/2018 – 27/07/2018

The ascending trend for the USD/JPY price continues. Estimated pivot point is at a level of 111.39

Main scenario: long positions are relevant from corrections above the level of 111.39 with a target of 113.95 – 115.50.

Alternative scenario: breakout and consolidation below the level of 111.77 will allow the USD/JPY price to continue declining to the levels at 110.78 – 109.35.

Analysis: Supposedly,  the wave B of senior level is developing on the daily timeframe, with the wave (C) of B starting to develop inside the wave B. In the 4-hour time frame,  the third wave iii of 3 of is developing. In the 1-hour timeframe, an ascending momentum as the third wave of junior level (iii) of iii is complete and the local correction (iv) of iii is developing. If the presumption is correct, after the correction finishes, USD/JPY rate will continue rising to the levels of 113.95 – 115.50. The level 1 111.39 is critical in this scenario.