The article covers the following subjects:
Highlights and key points
- Main scenario: consider short positions from corrections below the level of 147.30 with a bearish target of 131.25 – 123.97. A sell signal: if the price holds below 147.30. Stop Loss: above 149.00, Take Profit: 131.25 – 123.97.
- Alternative scenario: breakout and consolidation above the level of 147.30 will allow the pair to continue rising to the levels of 155.22 – 161.75. A buy signal: once the level of 147.30 is broken to the upside. Stop Loss: below 145.50, Take Profit: 155.22 – 161.75.
Main scenario
Consider short positions from corrections below the level of 147.30 with a target of 131.25 – 123.97.
Alternative scenario
Breakout and consolidation above the level of 147.30 will allow the pair to continue rising to the levels of 155.22 – 161.75.
Analysis
An ascending wave of larger degree 3 has presumably finished developing on the weekly chart, with wave (5) of 3 formed as its part. A bearish correction has started developing as the fourth wave of larger degree 4 on the daily chart, with wave (А) of 4 forming as its part. Apparently, wave 3 of (А) is unfolding, with a local corrective wave iv of 3 have being concluded as its part on the H4 time frame. If the presumption is correct, the USDJPY pair will continue declining within wave v of 3 to the levels of 131.25 – 123.97. The level of 147.30 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 155.22 – 161.75.
Price chart of USDJPY in real time mode
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