The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 148.15 with a target of 138.65 – 131.50. A sell signal: the level of 148.15 is broken to the downside. Stop Loss: above 149.20, Take Profit: 138.65 – 131.50.
- Alternative scenario: Breakout and consolidation above the level of 148.15 will allow the pair to continue rising to the levels of 151.32 – 154.70. A buy signal: the level of 148.15 is broken to the upside. Stop Loss: below 147.00, Take Profit: 151.32 – 154.70.
Main Scenario
Consider short positions from corrections below the level of 148.15 with a target of 138.65 – 131.50.
Alternative Scenario
Breakout and consolidation above the level of 148.15 will allow the pair to continue rising to the levels of 151.32 – 154.70.
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. On the H4 time frame, wave (C) of 4 is in progress, with the third wave 3 of (C) forming within. On the H1 time frame, apparently, the third wave of smaller degree iii of 3 is formed and a local correction is nearing completion in the form of the fourth wave iv of 3. If the presumption is correct, the USD/JPY pair will continue to fall to 138.65 – 131.50 after the correction is over. The level of 148.15 is critical in this scenario, as a breakout will enable the pair to continue rising to the levels of 151.32 – 154.70.
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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