The article covers the following subjects:
Highlights and key points
- Main scenario: consider long positions from corrections above the level of 141.66 with a growth target of 165.00 – 170.00. A buy signal: after the price returns above 141.66. Stop Loss: below 140.50, Take Profit: 165.00 – 170.00.
- Alternative scenario: breakout and consolidation below the level of 141.66 will allow the pair to continue declining to the levels of 129.34 – 121.00. A sell signal: after the level of 141.66 is broken to the downside. Stop Loss: above 143.00, Take Profit: 129.34 – 121.00.
Main scenario
Consider long positions from corrections above the level of 141.66 with a target of 165.00 – 170.00.
Alternative scenario
Breakout and consolidation below the level of 141.66 will allow the pair to continue declining to the levels of 129.34 – 121.00.
Analysis
An ascending wave of larger degree C continues forming on the daily chart, with the fifth wave (5) of C unfolding as its part. A bearish correction finished forming as the fourth wave 4 of (5) on the H4 time frame, and the fifth wave 5 of (5) began developing. Apparently, wave i of 5 is developing on the H1 time frame, with wave (ii) of i completed and wave (iii) of i unfolding as its parts. If the presumption is correct, the USDJPY pair will continue to rise to the levels of 165.00 – 170.00. The level of 141.66 is critical in this scenario as a breakout will enable the pair to continue falling to the levels of 129.34 – 121.00.
Price chart of USDJPY in real time mode
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