Main scenario: consider long positions above the level of 138.83 with a target of 147.00 – 149.99 once a correction is completed.
Alternative scenario: breakout and consolidation below the level of 138.83 will allow the pair to continue declining to the levels of 135.88 – 131.70.
Analysis: The upward third wave of larger degree (3) continues developing on the daily chart, with wave 3 of (3) formed as its part. A downward correction has finished developing as the fourth wave 4 of (3) on the H4 chart, and the fifth wave 5 of (3) is unfolding. Apparently, the third wave of smaller degree iii of 5 is formed on the H1 chart, and a local correction is forming as the fourth wave iv of 5, with wave (а) of iv developing as its part. If the presumption is correct, the pair will continue to rise to the levels of 147.00 – 149.99 after the correction is completed. The level of 138.83 is critical in this scenario as a breakout will enable the pair to continue declining to the levels of 135.88 – 131.70.
Price chart of USDJPY in real time mode
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