The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above 159.45 with a target of 165.00–170.00. A buy signal: the price holds above 159.45. Stop Loss: below 158.90, Take Profit: 165.00–170.00.
- Alternative scenario: Breakout and consolidation below the level of 159.45 will allow the pair to continue declining to the levels of 155.00–152.00. A sell signal: the level of 159.45 is broken to the downside. Stop Loss: above 160.00, Take Profit: 155.00–152.00.
Main Scenario
Consider long positions from corrections above the level of 159.45 with a target of 165.00–170.00.
Alternative Scenario
Breakout and consolidation below 159.45 will allow the pair to continue declining to the levels of 155.00–152.00.
Analysis
On the weekly chart, an ascending wave 3 of larger degree and a bearish correction 4 have formed. Wave 5 is currently underway. On the daily time frame, wave (3) of 5 of lower degree is developing, with wave 3 of (3) forming as its part. On the H4 chart, wave i of 3 and correction ii of 3 have been completed, and wave iii of 3 has started to unfold. If the presumption is correct, USD/JPY will continue to increase to 165.00–170.00. The level of 159.45 is critical in this scenario as a breakout above it will enable the pair to continue declining to the levels of 155.00–152.00.
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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