The USD/JPY pair is under correction, still likely to fall. Estimated pivot point is at a level of 110.75.
Main scenario: short positions will be relevant from corrections below the level of 110.75 with a target of 109.21 – 108.81.
Alternative scenario: Breakout and consolidation above the level of 110.75 will allow the pair to continue rising to a level of 111.40 and higher.
Analysis: Supposedly, the wave B of senior level is developing within the daily timeframe, with the wave (C) of B starting to develop inside. In the 4-hour time frame, a counter-trend impetus is formed as wave 1 of (C), a correction wave 2 of (C) is completed and the first wave of junior level i of 3 is formed. A downward correction is developing as wave ii of 3 in the form of plane (a)(b)(c). If this presumption is correct, the pair will continue to fall to 109.20 – 108.80. The level 110.75 is critical in this scenario.
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