The article covers the following subjects:
Highlights and key points
- Main scenario: consider long positions from corrections above the level of 141.66 with a growth target of 161.75 – 165.00. A buy signal: if the price holds above 141.66. Stop Loss: below 140.50, Take Profit: 161.75 – 165.00.
- Alternative scenario: breakout and consolidation below the level of 141.66 will allow the pair to continue declining to the levels of 129.34 – 121.00. A sell signal: once the level of 141.66 is broken to the downside. Stop Loss: above 142.50, Take Profit: 129.34 – 121.00.
Main scenario
Consider long positions from corrections above the level of 141.66 with a target of 161.75 – 165.00.
Alternative scenario
Breakout and consolidation below the level of 141.66 will allow the pair to continue declining to the levels of 129.34 – 121.00.
Analysis
An ascending wave of larger degree C continues forming on the daily chart, with the fifth wave (5) of C unfolding as its part. A bearish correction finished forming as the fourth wave 4 of (5) on the H4 time frame, and the fifth wave 5 of (5) began developing. Apparently, wave i of 5 is formed and a local correction is presumably completed as wave ii of 5 on the H1 chart. If the presumption is correct, the USDJPY pair will continue to grow in wave iii of 5 to the levels of 161.75 – 165.00. The level of 141.66 is critical in this scenario as a breakout will enable the pair to continue falling to the levels of 129.34 – 121.00.
Price chart of USDJPY in real time mode
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