The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 156.75 with a target of 138.08 – 131.25. A sell signal: the price holds below 156.75. Stop Loss: above 157.10, Take Profit: 138.08 – 131.25.
- Alternative scenario: Breakout and consolidation above the level of 156.75 will allow the pair to continue rising to the levels of 161.70 – 170.00. A buy signal: the level of 156.75 is broken to the upside. Stop Loss: below 156.40, Take Profit: 161.70 – 170.00.
Main Scenario
Consider short positions from corrections below the level of 156.75 with a target of 138.08 – 131.25.
Alternative Scenario
Breakout and consolidation above the level of 156.75 will allow the pair to continue rising to the levels of 161.70 – 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 and a local corrective wave (В) of 4 are completed. Apparently, wave (С) of В started developing on the H1 time frame, with the first wave of smaller degree 1 of (C) forming inside. If the presumption is correct, the USDJPY pair will continue to drop to the levels of 138.08 – 131.25. The level of 156.75 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 161.70 – 170.00.
Price chart of USDJPY in real time mode
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