The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above 153.90 with a target of 160.00–162.00. A buy signal: the price holds above 153.90. Stop Loss: below 153.90, Take Profit: 160.00–162.00.
- Alternative scenario: Breakout and consolidation below the level of 153.90 will allow the asset to continue declining to the levels of 152.20–147.80. A sell signal: the level of 153.90 is broken to the downside. Stop Loss: above 153.90, Take Profit: 152.20–147.80.
Main Scenario
Consider long positions from corrections above the level of 153.90 with a target of 160.00–162.00.
Alternative Scenario
Breakout and consolidation below 153.90 will allow the pair to continue declining to the levels of 152.20–147.80.
Analysis
An ascending fifth wave of larger degree 5 is developing on the weekly chart, with wave (1) of 5 forming as its part. Apparently, the third wave of smaller degree 3 of (1) has formed on the daily chart, and a correction has been completed as the fourth wave 4 of (1). The fifth wave 5 of (1) has presumably started developing on the H4 time frame, with wave i of 5 unfolding within. If the presumption is correct, USD/JPY will continue to rise to the levels of 160.00–162.00. The level of 153.90 is critical in this scenario as a breakout below it will enable the pair to continue declining to 152.20–147.80.
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
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance broker. 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 2014/65/EU.
According to copyright law, this article is considered intellectual property, which includes a prohibition on copying and distributing it without consent.
