The article covers the following subjects:
Highlights and key points
- Main scenario: consider long positions from corrections above the level of 151.85 with a target of 165.00 – 170.00. A buy signal: after the level of 151.85 is broken. Stop Loss: 150.50; Take Profit: 170.00.
- Alternative scenario: breakout and consolidation below the level of 151.85 will allow the pair to continue declining to the levels of 146.44 – 140.75. A sell signal: after the level of 151.85 is broken. Stop Loss: 153.00; Take Profit: 140.75.
Main scenario
Consider long positions from corrections above the level of 151.85 with a target of 165.00 – 170.00.
Alternative scenario
Breakout and consolidation below the level of 151.85 will allow the pair to continue declining to the levels of 146.44 – 140.75.
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 is formed, a correction has finished developing as the second wave ii of 3, and wave iii of 3 is completed on the H4 time frame. A local correction is presumably completed as wave iv of 3 on the H1 chart. If this assumption is correct, the USDJPY pair will continue to grow to the levels of 165.00 – 170.00 in wave v of 3. The level of 151.85 is critical in this scenario as a breakout will enable the pair to continue falling to the levels of 146.44 – 140.75.
Price chart of USDJPY in real time mode
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