The article covers the following subjects:
Major Takeaways
- Main scenario: After the correction ends, consider short positions below the level of 161.75 with a target of 138.00 – 131.40. A sell signal: if the price holds below 161.75. Stop Loss: above 162.10, Take Profit: 138.00 – 131.40.
- Alternative scenario: Breakout and consolidation above the level of 161.75 will allow the pair to continue rising to the levels of 170.00 – 175.00. A buy signal: the level of 161.75 is broken to the upside. Stop Loss: below 161.40, Take Profit: 170.00 – 175.00.
Main Scenario
Consider short positions below the level of 161.75 with a target of 138.00 – 131.40 once the correction is completed.
Alternative Scenario
Breakout and consolidation above the level of 161.75 will allow the pair to continue rising to the levels of 170.00 – 175.00.
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 corrective wave (В) of 4 is nearing completion on the H4 chart, with wave С of (В) forming as its part. Apparently, the fifth wave of smaller degree v of C of (B) is nearing completion on the H1 chart. After its completion, if this assumption is correct, the USD/JPY pair will continue to fall to 138.00 – 131.40. The level of 161.75 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 170.00 – 175.00.
Price chart of USDJPY in real time mode
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