The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above 156.40 with a target of 160.00–162.00. A buy signal: the price holds above 156.40. Stop Loss: below 156.40, Take Profit: 160.00–162.00.
- Alternative scenario: Breakout and consolidation below the level of 156.40 will allow the pair to continue declining to the levels of 155.10–154.40. A sell signal: the level of 156.40 is broken to the downside. Stop Loss: above 156.40, Take Profit: 155.10–154.40.
Main Scenario
Consider long positions from corrections above the level of 156.40 with a target of 160.00–162.00.
Alternative Scenario
Breakout and consolidation below 156.40 will allow the pair to continue declining to the levels of 155.10–154.40.
Analysis
An ascending fifth wave of larger degree 5 is developing on the weekly chart, with wave (1) of 5 forming as its part. 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 still forming within. If the presumption is correct, USD/JPY will continue to rise to the levels of 160.00–162.00. The level of 156.40 is critical in this scenario as a breakout below it will enable the pair to continue declining to the levels of 155.10–154.40.
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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