The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 152.25 with a target of 160.00–162.00. A buy signal: the price holds above 152.25. Stop Loss: below 152.25, Take Profit: 160.00–162.00.
- Alternative scenario: Breakout and consolidation below the level of 152.25 will allow the pair to continue declining to the levels of 147.80–145.40. A sell signal: the level of 152.25 is broken to the downside. Stop Loss: above 152.25, Take Profit: 147.80–145.40.
Main Scenario
Consider long positions from corrections above the level of 152.25 with a target of 160.00–162.00.
Alternative Scenario
Breakout and consolidation below 152.25 will allow the pair to continue declining to the levels of 147.80–145.40.
Analysis
An ascending fifth wave of larger degree 5 is developing on the weekly chart, with wave (1) of 5 forming as its part. The third wave of smaller degree 3 of (1) appears to have finished forming on the daily chart, with wave v of 3 completed as its part. On the H4 time frame, the local correction has likely finished as the fourth wave 4 of (1), and the fifth wave 5 of (1) has presumably started unfolding. If the presumption is correct, USD/JPY will continue to rise to the levels of 160.00–162.00. The level of 152.25 is critical in this scenario as a breakout below it will enable the pair to continue declining to the levels of 147.80–145.40.
This forecast is based on the Elliott Wave Theory. When developing trading strategies, it is essential to consider fundamental factors, as the market situation can change at any time.
Price chart of USDJPY in real time mode
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