The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 160.52 with a target of 154.60–151.76. A sell signal: the price holds below 160.52. Stop Loss: above 161.10, Take Profit: 154.60–151.76.
- Alternative scenario: Breakout and consolidation above 160.52 will allow the pair to continue rising to the levels of 163.90–166.50. A buy signal: the level of 160.52 is broken to the upside. Stop Loss: below 159.90, Take Profit: 163.90–166.50.
Main scenario
Consider short positions from corrections below the level of 160.52 with a target of 154.60–151.76.
Alternative scenario
Breakout and consolidation above 160.52 will allow the pair to continue rising to the levels of 163.90–166.50.
Analysis
On the weekly time frame, an ascending wave of larger degree 3 has formed, a downward correction 4 has been completed, and 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 developing, with a local correction iv of A presumably completed as its part. If the presumption is correct, USD/JPY will continue to decline to the levels of 154.60–151.76. The level of 160.52 is critical in this scenario as a breakout above it will enable the pair to continue rising to the levels of 163.90–166.50.
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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