Main scenario: long positions will be relevant above the level of 112.75 with a target of 116.00 – 118.00 once a correction has formed.
Alternative scenario: breakout and consolidation below the level of 112.75 will allow the pair to continue declining to the levels of 110.83 – 109.12.
Analysis: Daily chart: there’s an ascending wave of larger degree C that has presumably started forming. The third wave 3 of (1) of С is unfolding as part of the wave C.
H4 chart: a correction is completed as wave ii of 3, and wave iii of 3 is forming. On the H1 chart, apparently, wave (iii) of iii is formed, and a local correction is nearing completion as wave (iv) of iii, with wave c of (iv) forming as part of it. If the presumption is correct, the pair will continue to rise to the levels of 116.00 – 118.00 after the correction is completed. The level of 112.75 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 110.83 – 109.12.
Price chart of USDJPY in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.