USD/JPY remains likely to fall. Estimated pivot point is at a level of 108.19.
Main scenario: consider short positions from corrections below the level of 108.19 with a target of 105.21 – 104.50.
Alternative scenario: breakout and consolidation above the level of 108.19 will allow the pair to continue rising to the levels of 109.84 – 110.75.
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 continues forming as wave 2 of (1). Apparently, wave с of 2 is forming on the H1 time-frame, with the first wave of smaller degree (i) of с of 2 formed and a correction developing in the form of wave (ii) of c inside. If the presumption is correct, the pair will continue to fall to the levels of 105.21 – 104.50 after the correction. The level of 108.19 is critical in this scenario as the breakout will enable the pair to continue growing to the levels of 109.84 – 110.75.
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Price chart of USDJPY in real time mode
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