The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 157.88 with a target of 151.73 – 150.20. A sell signal: the price holds below 157.88. Stop Loss: above 157.88, Take Profit: 151.73 – 150.20.
- Alternative scenario: Breakout and consolidation above the level of 157.88 will allow the price to continue rising to the levels of 162.00 – 165.00. A buy signal: the level of 157.88 is broken to the upside. Stop Loss: below 157.88, Take Profit: 162.00 – 165.00.
Main Scenario
Consider short positions from corrections below the level of 157.88 with a target of 151.73 – 150.20.
Alternative Scenario
Breakout and consolidation above the level of 157.88 will allow the pair to continue rising to the levels of 162.00 – 165.00.
Analysis
On the weekly time frame, an ascending 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. On the daily time frame, wave (1) of 5 is likely unfolding, with the third wave of smaller degree 3 of (1) formed as its part. On the H4 time frame, a local correction has presumably started developing as the fourth wave 4 of (1), with wave a of 4 forming within. If the presumption is correct, the USD/JPY pair will continue to drop to the levels of 151.73 – 150.20. The level of 157.88 is critical in this scenario as a breakout above it will enable the pair to continue rising to the levels of 162.00 – 165.00.
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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