USD/JPY: Wave Analysis and Forecast for 20.05 – 27.05
Estimated pivot point is at the level of 109.67.
Our opinion: In the short-term: sell the pair below the level of 109.67 with the target of 108.20. In the medium-term: wait for the completion of the correction and buy the pair above the level of 105.46 with the target of 112.50.
Alternative scenario: Breakout and consolidation of the price below the level of 105.46 will trigger the decline in the pair to the levels of 104.00 – 103.00 within the long-term downtrend.
Analysis: Presumably, the formation of the upward correction as the fourth wave of the senior level continues. At the moment it is likely that the formation of the wave (a) of iv is nearing completion. Within this wave an impetus seems to be formed. If this assumption is correct, after the completion of the local correction (b) the pair will continue to rise to 112.50 – 114.70. Critical level for this scenario is 105.46.
