The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 152.30 with a target of 141.65 – 138.08. A sell signal: the price holds below 152.30. Stop Loss: above 152.60, Take Profit: 141.65 – 138.08.
- Alternative scenario: Breakout and consolidation above the level of 152.30 will allow the pair to continue rising to the levels of 154.00 – 155.80. A buy signal: the level of 152.30 is broken to the upside. Stop Loss: below 152.00, Take Profit: 154.00 – 155.80.
Main Scenario
Consider short positions from corrections below the level of 152.30 with a target of 141.65 – 138.08.
Alternative Scenario
Breakout and consolidation above the level of 152.30 will allow the pair to continue rising to the levels of 154.00 – 155.80.
Analysis
The daily time frame shows that an ascending wave of larger degree 3 is presumably formed, and a bearish correction is developing as the fourth wave of larger degree 4, with wave (А) of 4 completed as its part. A correction is formed as wave (В) of 4 on the H4 chart, and wave (С) of В is currently unfolding. The first wave of smaller degree 1 of (C) appears to be developing on the H1 chart, with a local corrective wave iv of 1 forming inside. If the presumption is correct, the USD/JPY pair will continue falling to 141.65 – 138.08 after the correction is over. The level of 152.30 is critical in this scenario as a breakout will enable the pair to continue growing to the levels of 154.00 – 155.80.
Price chart of USDJPY in real time mode
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