Main scenario: consider long positions from corrections above the level of 113.58 with a target of 116.50 – 118.00.
Alternative scenario: breakout and consolidation below the level of 113.58 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. Apparently, the fifth wave of smaller degree (v) of iii is developing on the H1 chart, with wave iii of (v) developing inside. If the presumption is correct, the pair will continue to rise to the levels of 116.50 – 118.00. The level of 113.58 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
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