USDJPY Wave analysis and forecast for 01.08 – 08.08: Correction continues. The pair may go up in the short term.

Estimated pivot point is at the level of 101.00.

Our opinion: Buy the pair from correction above the level of 101.00 with the target of 104.10.

Alternative scenario: Breakout of the level of 101.00 will allow the price to continue the decline to the level of 99.50.

Analysis: On the daily timeframe it is not excluded that the formation of the horizontal correction as the wave (B) is still ongoing. At the moment it is likely that the wave (C) is being formed, within which diagonal triangle can be formed. Locally, the third wave iii of (C) is being formed. If this assumption is correct, the pair will continue to rise up to the level of 104.10. Critical level for this scenario is 101.00.