USD/JPY: Wave analysis and forecast for 18/01/2019 – 25/01/2019

The pair USD/JPY is likely to grow. Estimated pivot point is at a level of 107.73.

Main scenario: long positions will be relevant above the level of 107.73 with a target of 111.42 – 113.66.

Alternative scenario: Breakout and consolidation below the level of 107.73 will allow the pair to continue declining to the levels of 106.20 – 104.50.

Analysis: Supposedly, the wave of senior level (C) of B continues developing on the daily time frame, with the wave 2 of (C) formed inside. Presumably a local correction is completed as the wave 2 of (C) on the 4-hour timeframe. Apparently, the wave 3 of (C) starts forming on the H1 time-frame, with the correction wave of junior level (ii) of i of 3 completed and the wave (iii) of i starting to form inside. If the presumption is correct, the pair will continue to rise to the levels of 111.42 – 113.66. The level 107.73 is critical in this scenario.