The article covers the following subjects:
Major Takeaways
- Main scenario: After the correction ends, consider short positions below the level of 153.70 with a target of 141.65 – 138.08. A sell signal: the price holds below 153.70. Stop Loss: above 154.00, Take Profit: 141.65 – 138.08.
- Alternative scenario: Breakout and consolidation above the level of 153.70 will allow the pair to continue rising to the levels of 154.85 – 156.80. A buy signal: the level of 153.70 is broken to the upside. Stop Loss: below 153.40, Take Profit: 154.85 – 156.80.
Main Scenario
Consider short positions below the level of 153.70 with a target of 141.65 – 138.08 once the correction is completed.
Alternative Scenario
Breakout and consolidation above the level of 153.70 will allow the pair to continue rising to the levels of 154.85 – 156.80.
Analysis
The daily time frame shows that an ascending wave of larger degree 3 is presumably formed, and a bearish correction is developing as the fourth wave 4, with wave (А) of 4 completed as its part. A correction is formed as wave (В) of 4 on the H4 chart, and wave (С) of В is currently unfolding. Apparently, the first wave of smaller degree 1 of (C) is formed on the H1 time frame, and a local correction is nearing completion as the second wave 2 of С. If the presumption is correct, the USD/JPY pair will continue falling to 141.65 – 138.08 after the correction is over. The level of 153.70 is critical in this scenario as a breakout will enable the pair to continue growing to the levels of 154.85 – 156.80.
Price chart of USDJPY in real time mode
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