Main scenario: consider long positions from corrections above the level of 111.53 with a target of 116.50 – 118.00.
Alternative scenario: breakout and consolidation below the level of 111.53 will allow the pair to continue declining to the levels of 109.09 – 107.44.
Analysis: an ascending wave of larger degree C has presumably started forming on the daily chart, with the third wave 3 of (1) of С unfolding as part of it. A correction is completed as wave ii of 3 and wave iii of 3 is formed on the H4 chart. Apparently, a local correction is forming as the fourth wave of smaller degree iv of 3 on the H1 chart, with wave (а) of iv developing inside. If the presumption is correct, the pair will continue to rise to the levels of 116.50 – 118.00 after the correction is completed. The level of 111.53 is critical in this scenario as a breakout will enable the pair to continue declining to the levels of 109.09 – 107.44.
Price chart of USDJPY in real time mode
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