The article covers the following subjects:
Key takeaways
- Main scenario: consider long positions above the level of 154.50 with a target of 165.00 – 170.00 once a correction has formed. A buy signal: after the level of 154.50 is broken. Stop Loss: 153.00, Take Profit: 170.00.
- Alternative scenario: breakout and consolidation below the level of 154.50 will allow the pair to continue declining to the levels of 151.68 – 146.44. A sell signal: after the level of 154.50 is broken. Stop Loss: 156.00, Take Profit: 146.44.
Main scenario
Consider long positions above the level of 154.50 with a target of 165.00 – 170.00 once a correction is formed.
Alternative scenario
Breakout and consolidation below the level of 154.50 will allow the pair to continue declining to the levels of 151.68 – 146.44.
Analysis
The upward fifth wave of larger degree (5) of C continues developing on the daily chart, with the third wave 3 of (5) forming as its part. The first wave of smaller degree i of 3 has formed, a correction finished developing as the second wave ii of 3, and wave iii of 3 is unfolding on the H4 time frame. Wave (v) of iii is developing on the H1 chart, within which wave iii of (v) has formed and a local correction is presumably nearing completion as wave iv of (v). If the presumption is correct, the USDJPY will continue to rise to the levels of 165.00 – 170.00 after the correction ends. The level of 154.50 is critical in this scenario as a breakout will allow the pair to continue falling to the levels of 151.68 – 146.44.
Price chart of USDJPY in real time mode
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