The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 151.50 with a target of 156.50 – 158.85. A buy signal: the price holds above 151.50. Stop Loss: below 151.40, Take Profit: 156.50 – 158.85.
- Alternative scenario: Breakout and consolidation below the level of 151.50 will allow the pair to continue declining to the levels of 149.18 – 146.40. A sell signal: the level of 151.50 is broken to the downside. Stop Loss: above 151.60, Take Profit: 149.18 – 146.40.
Main Scenario
Consider long positions from corrections above the level of 151.50 with a target of 156.50 – 158.85.
Alternative Scenario
Breakout and consolidation below the level of 151.50 will allow the pair to continue declining to the levels of 149.18 – 146.40.
Analysis
On the weekly time frame, an ascending wave of larger degree 3 has formed, and a downward correction appears to have completed as the fourth wave 4. On the daily time frame, the fifth wave 5 has presumably started forming, with wave (1) of 5 continuing to develop as its part. Apparently, the third wave of smaller degree 3 of (1) is forming on the H4 chart, with wave v of 3 developing as its part. If the presumption is correct, the USD/JPY pair will continue to rise to the levels of 156.50 – 158.85. The level of 151.50 is critical in this scenario as a breakout will enable the pair to continue declining to the levels of 149.18 – 146.40.
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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