The article covers the following subjects:
Major Takeaways
- Main scenario: Once the correction ends, consider long positions above 150.80 with a target of 162.00–165.00. A buy signal: the price holds above 150.80. Stop Loss: below 150.80, Take Profit: 162.00–165.00.
- Alternative scenario: Breakout and consolidation below the level of 150.80 will allow the pair to continue declining to the levels of 147.80–145.40. A sell signal: the level of 150.80 is broken to the downside. Stop Loss: above 150.80, Take Profit: 147.80–145.40.
Main Scenario
Consider long positions above the level of 150.80 with a target of 162.00–165.00 once the correction ends.
Alternative Scenario
Breakout and consolidation below 150.80 will allow the pair to continue declining to the levels of 147.80–145.40.
Analysis
An ascending fifth wave of larger degree 5 is developing on the weekly chart, with wave (1) of 5 forming as its part. The third wave of smaller degree 3 of (1) appears to have finished forming on the daily chart, with wave v of 3 completed as its part. Apparently, a local correction is developing as the fourth wave 4 of (1) on the H4 chart. If this assumption is correct, the USD/JPY pair will continue to rise to 162.00–165.00 once the correction is over. The level of 150.80 is critical in this scenario as a breakout below it will enable the pair to continue declining to the levels of 147.80–145.40.
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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