The article covers the following subjects:
Major Takeaways
- Main scenario: After the correction ends, consider short positions below the level of 153.70 with a target of 141.65 – 138.08. A sell signal: the price holds below 153.70. Stop Loss: above 154.00, Take Profit: 141.65 – 138.08.
- Alternative scenario: Breakout and consolidation above the level of 153.70 will allow the pair to continue rising to the levels of 154.85 – 156.80. A buy signal: the level of 153.70 is broken to the upside. Stop Loss: below 153.40, Take Profit: 154.85 – 156.80.
Main Scenario
Consider short positions below the level of 153.70 with a target of 141.65 – 138.08 once the correction is completed.
Alternative Scenario
Breakout and consolidation above the level of 153.70 will allow the pair to continue rising to the levels of 154.85 – 156.80.
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 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. Apparently, the first wave of smaller degree 1 of (C) is formed on the H1 time frame, and a local correction is nearing completion as the second wave 2 of С. 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 153.70 is critical in this scenario as a breakout will enable the pair to continue growing to the levels of 154.85 – 156.80.
Price chart of USDJPY in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.
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