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 165.00 – 170.00. A buy signal: after the price returns above 141.66. Stop Loss: below 140.50, Take Profit: 165.00 – 170.00.
- 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: after the level of 141.66 is broken to the downside. Stop Loss: above 143.00, Take Profit: 129.34 – 121.00.
Main scenario
Consider long positions from corrections above the level of 141.66 with a target of 165.00 – 170.00.
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 С unfolding as its part. The third wave of smaller degree 3 of (5) is formed on the H4 chart, and a downside correction is completed as the fourth wave 4 of (5). The fifth wave 5 of (5) has started developing. On the H1 time frame, the wave i of 5 is unfolding, with the wave (ii) of i completed and the wave (iii) of I developing as its part. If this assumption is correct, the USDJPY pair will continue to rise to 165.00 – 170.00. The level of 141.66 is critical in this scenario as a breakout will enable the pair to continue declining to the levels of 129.34 – 121.00.
Price chart of USDJPY in real time mode
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