The article covers the following subjects:
Major Takeaways
- Main scenario: After the correction ends, consider short positions below the level of 161.64 with a target of 138.08 – 131.25. A sell signal: the price holds below 161.64. Stop Loss: above 162, Take Profit: 138.08 – 131.25.
- Alternative scenario: Breakout and consolidation above the level of 161.64 will allow the pair to continue rising to the levels of 165.00 – 170.00. A buy signal: the level of 161.64 is broken to the upside. Stop Loss: below 161.30, Take Profit: 165.00 – 170.00.
Main Scenario
Consider short positions below the level of 161.64 with a target of 138.08 – 131.25 once the correction is completed.
Alternative Scenario
Breakout and consolidation above the level of 161.64 will allow the pair to continue rising to the levels of 165.00 – 170.00.
Analysis
An 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 is formed and a local corrective wave (В) of 4 is nearing completion. Apparently, wave С of (В) is nearing completion on the H1 chart, with the fifth wave of smaller degree v of C unfolding as its part. If this assumption is correct, the USDJPY pair will continue to decline to 138.08 – 131.25 in wave (С) of 4 after wave (B) of 4 is completed. The level of 161.64 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 165.00 – 170.00.
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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