The article covers the following subjects:
Highlights and key points
- Main scenario: after the correction ends, consider short positions below the level of 151.54 with a target of 138.08 – 131.25. A sell signal: if the price holds below 151.54. Stop Loss: above 152.20, Take Profit: 138.08 – 131.25.
- Alternative scenario: breakout and consolidation above the level of 151.54 will allow the pair to continue rising to the levels of 153.88 – 156.74. A buy signal: once the level of 151.54 is broken to the upside. Stop Loss: below 151.00, Take Profit: 153.88 – 156.74.
Main scenario
Consider short positions below the level of 151.54 with a target of 138.08 – 131.25 once the correction is completed.
Alternative scenario
Breakout and consolidation above the level of 151.54 will allow the pair to continue rising to the levels of 153.88 – 156.74.
Analysis
The ascending wave of larger degree 3 has presumably finished developing on the daily chart, with wave (5) of 3 formed as its part. On the H4 chart, a descending correction is developing as the fourth wave of larger degree 4, within which wave (А) of 4 is formed and a local corrective wave (В) of 4 is nearing completion. Apparently, wave С of (В) is nearing completion on the H1 chart, within which wave v of C is coming to an end. If this assumption is correct, the USDJPY pair will continue to decline to 138.08 – 131.25 following the correction. The level of 151.54 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 153.88 – 156.74.
Price chart of USDJPY in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.
{{value}} ( {{count}} {{title}} )
This post is originally published on LITEFINANCE.
