The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 156.81 with a target of 148.50 – 138.65. A sell signal: the level of 156.81 is broken to the downside. Stop Loss: above 157.30, Take Profit: 148.50 – 138.65.
- Alternative scenario: Breakout and consolidation above the level of 156.81 will allow the pair to continue rising to the levels of 161.96 – 165.50. A buy signal: the price holds above 156.81. Stop Loss: below 156.00, Take Profit: 161.96 – 165.50.
Main Scenario
Consider short positions from corrections below the level of 156.81 with a target of 148.50 – 138.65.
Alternative Scenario
Breakout and consolidation above the level of 156.81 will allow the pair to continue rising to the levels of 161.96 – 165.50.
Analysis
The daily time frame shows that the ascending wave of larger degree 3 is presumably formed, and the bearish correction continues developing as the fourth wave 4, with wave (А) of 4 completed as its part. The corrective wave (В) of 4 is presumably complete on the H4 chart, with wave С of (В) formed as its part. Apparently, wave (C) of 4 is in progress on the H1 chart, within which the first wave of smaller degree i of 1 of (C) is formed, the local correction is completed as wave ii of 1 of (C), and wave iii of 1 of (C) is developing. If the presumption is correct, USD/JPY will continue to drop to the levels of 148.50 – 138.65. The level of 156.81 is critical in this scenario as a breakout will enable the pair to continue growing to the levels 161.96 – 165.50.
This forecast is based on the Elliott Wave Theory. When developing trading strategies, it is essential to consider fundamental factors, as the market situation can change at any time.
Price chart of USDJPY in real time mode
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