Main scenario: consider long positions from corrections above the level of 112.30 with a target of 115.00 – 116.00.
Alternative scenario: breakout and consolidation below the level of 112.30 will allow the pair to continue declining to the levels of 110.83 – 109.012.
Analysis: daily chart: there’s an ascending wave of larger degree C that presumably has 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 developing as wave (iv) of iii. If the presumption is correct, the pair will continue to rise to the levels of 115.00 – 116.00 after the correction is completed. The level of 112.30 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 110.83 – 109.012.
Price chart of USDJPY in real time mode
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