USD/JPY remains likely to grow. Estimated pivot point is at a level of 108.20.
Main scenario: Long positions should be considered from corrections above the level of 108.20 with a target of 110.75 – 111.80.
Alternative scenario: Breakout and consolidation below the level of 108.20 will allow the pair to continue declining to the levels of 107.34 – 106.72.
Analysis: On the daily time frame, apparently a descending correction of larger degree finished forming as wave B and wave С started developing. On the H4 time frame, the first wave 1 of (1) of C formed and a local correction finished forming as wave 2 of (1). Apparently, wave 3 of (1) started forming on the H1 time frame. Inside it, there’s the first wave i of 3 formed, a descending correction developed as wave ii of 3 and the third wave iii of 3 developing. If the presumption is correct, the pair will continue to rise to the levels of 110.75 – 111.80. The level of 108.20 is critical in this scenario as the breakout will enable the pair to continue declining to the levels of 107.34 – 106.72.
