The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 156.75 with a target of 138.08 – 131.25. A sell signal: the price holds below 156.75. Stop Loss: above 157.10, Take Profit: 138.08 – 131.25.
- Alternative scenario: Breakout and consolidation above the level of 156.75 will allow the pair to continue rising to the levels of 161.70 – 170.00. A buy signal: the level of 156.75 is broken to the upside. Stop Loss: below 156.40, Take Profit: 161.70 – 170.00.
Main Scenario
Consider short positions from corrections below the level of 156.75 with a target of 138.08 – 131.25.
Alternative Scenario
Breakout and consolidation above the level of 156.75 will allow the pair to continue rising to the levels of 161.70 – 170.00.
Analysis
An ascending wave of larger degree 3 has presumably finished developing on the daily chart, with wave (5) of 3 formed as its part. On the H4 chart, a descending correction is developing as the fourth wave of larger degree 4, within which wave (А) of 4 and a local corrective wave (В) of 4 are completed. Apparently, wave (С) of В started developing on the H1 time frame, with the first wave of smaller degree 1 of (C) forming inside. If the presumption is correct, the USDJPY pair will continue to drop to the levels of 138.08 – 131.25. The level of 156.75 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 161.70 – 170.00.
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 LiteFinance. 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.
