USD/JPY: Wave analysis and forecast for 17/08/2018 – 24/08/2018

The pair USD/JPY is still likely to fall. Estimated pivot point is at a level of 111.42.

Main scenario: short positions will be relevant from corrections below the level of 111.42 with a target of 109.93 – 109.35.

Alternative scenario: breakout and consolidation above the level of 111.42 will allow the pair to continue rising to a level of 113.22.

Analysis: Supposedly, the wave B of senior level is developing within the daily timeframe, with the wave (C) of B developing inside the wave B. Supposedly, a local correction continues forming in the form of wave 2 of C taking a shape of an irregular plane on the 4-hour time frame. On the 1H time frame, the wave c of 2 is forming now, with the wave (iv) of c of junior level developed and the wave (v) of c forming within. If the presumption is correct, the pair will continue to drop to the levels 109.93 – 109.35. The level 111.42 is critical in this scenario.