The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 154.81 with a target of 148.50 – 138.65. A sell signal: the level of 154.81 is broken to the downside. Stop Loss: above 155.50, Take Profit: 148.50 – 138.65.
- Alternative scenario: Breakout and consolidation above the level of 154.81 will allow the pair to continue rising to the levels of 158.86 – 161.96. A buy signal: the level of 154.81 is broken to the upside. Stop Loss: below 154.00, Take Profit: 158.86 – 161.96.
Main Scenario
Consider short positions from corrections below the level of 154.81 with a target of 148.50 – 138.65.
Alternative Scenario
Breakout and consolidation above the level of 154.81 will allow the pair to continue rising to the levels of 158.86 – 161.96.
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. On the H4 chart, correction appears to have finished developing as wave (В) of 4, and wave (C) of 4 started forming. Apparently, the first wave of smaller degree 1 of (C) is forming on the H1 chart, within which wave v of 1 of (C) has presumably started unfolding. If the presumption is correct, USD/JPY will continue to drop to the levels of 148.50 – 138.65. The level of 154.81 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 158.86 – 161.96.
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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