Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 152.31 with a target of 147.53 – 138.65. A sell signal: the level of 152.31 is broken to the downside. Stop Loss: above 153.00, Take Profit: 147.53 – 138.65.
- Alternative scenario: Breakout and consolidation above the level of 152.31 will allow the pair to continue rising to the levels of 155.27 – 158.86. A buy signal: the level of 152.31 is broken to the upside. Stop Loss: below 151.50, Take Profit: 155.27 – 158.86.
Main scenario
Consider short positions from corrections below the level of 152.31 with a target of 147.53 – 138.65.
Alternative scenario
Breakout and consolidation above the level of 152.31 will allow the pair to continue rising to the levels of 155.27 – 158.86.
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 time frame, with wave v of 1 of (C) continuing developing as its part. If the presumption proves correct, USD/JPY will continue to drop to the levels of 147.53 – 138.65. The level of 152.31 is critical in this scenario as a breakout will enable the pair to continue growing to the levels of 155.27 – 158.86.
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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