The article covers the following subjects:
Major Takeaways
- Main scenario: consider long positions from corrections above the level of 148.52 with a target of 153.68 – 154.94. A buy signal: the level of 148.52 is broken to the upside. Stop Loss: below 148.00, Take Profit: 153.68 – 154.94.
- Alternative scenario: breakout and consolidation below the level of 148.52 will allow the pair to continue declining to the levels of 142.00 – 138.65. A sell signal: the level of 148.52 is broken to the downside. Stop Loss: above 149.00, Take Profit: 142.00 – 138.65.
Main Scenario
Consider long positions from corrections above the level of 148.52 with a target of 153.68 – 154.94.
Alternative Scenario
Breakdown and consolidation below the level of 148.52 will allow the pair to continue declining to the levels of 142.00 – 138.65.
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, with wave (А) of 4 completed as its part. On the H4 chart, correction appears to have finished developing as wave (В) of 4, and wave (C) of 4 is forming. On the H1 time frame, apparently, the first wave of smaller degree 1 of (C) is formed and a local correction started unfolding in the form of the second wave 2 of (C). If the presumption is correct, the USD/JPY pair will continue to rise to the levels of 153.68 – 154.94. The level of 148.52 is critical in this scenario, as a breakout will enable the pair to continue declining to the levels of 142.00 – 138.65.
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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