The article covers the following subjects:
Major Takeaways
- Main scenario: after the correction ends, consider short positions below the level of 151.27 with a target of 138.65 – 131.50. A sell signal: if the price holds below 151.27. Stop Loss: above 152.20, Take Profit: 138.65 – 131.50.
- Alternative scenario: Breakout and consolidation above the level of 151.27 will allow the pair to continue rising to the levels of 158.85 – 161.80. A buy signal: the level of 151.27 is broken to the upside. Stop Loss: below 150.40, Take Profit: 158.85 – 161.80.
Main Scenario
Consider short positions below the level of 151.27 with a target of 138.65 – 131.50 once the correction is completed.
Alternative Scenario
Breakout and consolidation above the level of 151.27 will allow the pair to continue rising to the levels of 158.85 – 161.80.
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, within which wave (А) of 4 and the corrective wave (В) of 4 are completed. On the H4 time frame, wave (C) of 4 is in progress, with the third wave 3 of (C) formed within. On the H1 chart, the descending correction appears to be forming as the fourth wave 4 of (C), with wave с of 4 forming as its part. If the presumption is correct, the USD/JPY pair will continue falling to 138.65 – 131.50 after the correction is over. The level of 151.27 is critical in this scenario, as a breakout will enable the pair to continue rising to the levels of 158.85 – 161.80.
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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