The article covers the following subjects:
Highlights and key points
- Main scenario: consider short positions from corrections below the level of 153.83 with a target of 138.08 – 131.25. A sell signal: if the price holds below 153.83. Stop Loss: above 154.20, Take Profit: 138.08 – 131.25.
- Alternative scenario: breakout and consolidation above the level of 153.83 will allow the pair to continue rising to the levels of 156.74 – 161.70. A buy signal: once the level of 153.83 is broken to the upside. Stop Loss: below 153.50, Take Profit: 156.74 – 161.70.
Main scenario
Consider short positions from corrections below the level of 153.83 with a target of 138.08 – 131.25.
Alternative scenario
Breakout and consolidation above the level of 153.83 will allow the pair to continue rising to the levels of 156.74 – 161.70.
Analysis
The ascending wave of larger degree 3 has presumably finished developing on the daily chart, with wave (5) of 3 formed as its part. On the H4 chart, a descending correction is developing as the fourth wave of larger degree 4, within which wave (А) of 4 and a local corrective wave (В) of 4 are completed. Apparently, wave (С) of 4 has started developing on the H1 time frame. If this assumption is correct, the USDJPY pair will continue to fall to 138.08 – 131.25. The level of 153.83 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 156.74 – 161.70.
Price chart of USDJPY in real time mode
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