USD/JPY: Wave analysis and forecast for 18.03 – 25.03 - 2016

USD/JPY: Wave analysis and forecast for 18.03 – 25.03 - 2016

USD/JPY: Wave analysis and forecast for 18.03 – 25.03: Downtrend continues.

Estimated pivot point is at the level of 113.84.

Our opinion: Sell the pair from correction below the level of 113.84 with the targets of 107.00 – 106.60.

Alternative scenario: Breakout and consolidation of the price above the level of 113.84 will trigger rise up to the level of 116.00.

Analysis: Presumably the formation of the downward impetus continues in the third wave of the senior level. At the moment it is likely that the upward correction has completed as the fourth wave (iv) of iii, which has taken a shape of a triangle. The fifth wave (v) of iii is being developed within which one-two impetus of the junior level is being formed. If this assumption is correct, the pair will continue to decline to 106.60. Critical level for this scenario is 113.84.