The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 146.00 with a target of 138.65 – 131.50. A sell signal: the price holds below 146.00. Stop Loss: above 148.00, Take Profit: 138.65 – 131.50.
- Alternative scenario: Breakout and consolidation above the level of 146.00 will allow the pair to continue rising to the levels of 151.20 – 158.85. A buy signal: the level of 146.00 is broken to the upside. Stop Loss: below 144.00, Take Profit: 151.20 – 158.85.
Main Scenario
Consider short positions from corrections below the level of 146.00 with a target of 138.65 – 131.50.
Alternative Scenario
Breakout and consolidation above the level of 146.00 will allow the pair to continue rising to the levels of 151.20 – 158.85.
Analysis
On the weekly time frame, the formation of the ascending wave 3 of larger degree has likely been completed, and a downward correction is unfolding as the fourth wave 4. On the daily time frame, wave (C) of 4 is in progress, with the fifth wave 5 of (C) forming within. On the H4 time frame, apparently, a local correction finished developing as wave ii of 5 and wave iii of 5 is currently unfolding. If the presumption is correct, the USD/JPY pair will continue to drop to the levels of 138.65 – 131.50. The level of 146.00 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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