The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 151.11 with a target of 138.65 – 131.50. A sell signal: the price holds below 151.11 Stop Loss: above 151.50, Take Profit: 138.65 – 131.50.
- Alternative scenario: Breakout and consolidation above the level of 151.11 will allow the pair to continue rising to the levels of 154.70 – 158.76. A buy signal: the level of 151.11 is broken to the upside. Stop Loss: below 150.70, Take Profit: 154.70 – 158.76.
Main scenario
Consider short positions from corrections below the level of 151.11 with a target of 138.65 – 131.50.
Alternative scenario
Breakout and consolidation above the level of 151.11 will allow the pair to continue rising to the levels of 154.70 – 158.76.
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, within which wave (А) of 4 and the corrective wave (В) of 4 are completed. Wave (C) of 4 is developing on the H4 time frame, within which the first wave 1 of (C) is formed and a correction is completed as the second wave 2 of (C). Apparently, the third wave 3 of (C) is in progress on the H1chart, within which wave i of 3 is formed and local correction is developing as wave ii of 3. After correction, if the presumption is correct, USD/JPY will continue to fall to 138.65 – 131.50. The level of 151.11 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 154.70 – 158.76.
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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