The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 156.95 with a target of 161.00–163.00. A buy signal: the price holds above 156.95. Stop Loss: below 156.50, Take Profit: 161.00–163.00.
- Alternative scenario: Breakout and consolidation below the level of 156.95 will allow the pair to continue declining to the levels of 156.07–155.16. A sell signal: the level of 156.95 is broken to the downside. Stop Loss: above 157.40, Take Profit: 156.07–155.16.
Main Scenario
Consider long positions above 156.95 with a target of 161.00–163.00 once the correction ends.
Alternative Scenario
Breakout and consolidation below 156.95 will allow the pair to continue declining to the levels of 156.07–155.16.
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) is likely developing on the H4 timeframe. Within it, wave i of 5 has formed and a local correction is nearing completion as wave ii of 5. If the presumption is correct, USD/JPY will continue to rise to the levels of 161.00–163.00 after the correction ends. The level of 156.95 is critical in this scenario as a breakout below it will enable the pair to continue declining to the levels of 156.07–155.16.
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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