The article covers the following subjects:
Major Takeaways
Main scenario: Consider short positions from corrections below the level of 145.90 with a target of 138.65 – 131.50. A sell signal: the price holds below 145.90. Stop Loss: above 146.30, Take Profit: 138.65 – 131.50.Alternative scenario: Breakout and consolidation above the level of 145.90 will allow the pair to continue rising to the levels of 151.20 – 158.85. A buy signal: the level of 145.90 is broken to the upside. Stop Loss: below 145.50, Take Profit: 151.20 – 158.85.
Main scenario
Consider short positions from corrections below the level of 145.90 with a target of 138.65 – 131.50.
Alternative scenario
Breakout and consolidation above the level of 145.90 will allow the pair to continue rising to the levels of 151.20 – 158.85.
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, within which wave (А) of 4 and the corrective wave (В) of 4 are completed. Wave (C) of 4 is developing on the H4 time frame, within which the third wave 3 of (C) is formed and a correction is completed as the fourth wave 4 of (C). Apparently, the fifth wave 5 of (C) is developing on the H1 chart, with a local correction ii of 5 nearing completion within. If the presumption proves correct, USD/JPY will continue to drop to the levels of 138.65 – 131.50. The level of 145.90 is critical in this scenario as a breakout will enable the pair to continue growing to the levels of 151.20 – 158.85.
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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