The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 159.00 with a target of 151.76–148.92. A sell signal: the price holds below 159.00. Stop Loss: above 159.60, Take Profit: 151.76–148.92.
- Alternative scenario: Breakout and consolidation above the level of 159.00 will allow the pair to continue rising to the levels of 163.90–167.50. A buy signal: the level of 159.00 is broken to the upside. Stop Loss: below 158.40, Take Profit: 163.90–167.50.
Main Scenario
Consider short positions from corrections below the level of 159.00 with a target of 151.76–148.92.
Alternative Scenario
Breakout and consolidation above 159.00 will allow the pair to continue rising to the levels of 163.90–167.50.
Analysis
On the weekly time frame, an ascending third wave of larger degree 3 has formed, a downward correction has been completed as the fourth wave 4, and the fifth wave 5 is developing. Apparently, the first wave of smaller degree (1) of 5 has formed and a bearish correction (2) of 5 is developing on the daily chart. On the H4 time frame, wave A of (2) is unfolding. Within it, wave iii of A has formed, a local correction has been completed as wave iv of A, and wave v of A has started developing. If the presumption is correct, USD/JPY will continue to decline to the levels of 151.76–148.92. The level of 159.00 is critical in this scenario as a breakout above it will enable the pair to continue rising to the levels of 163.90–167.50.
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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