The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above 160.55 with a target of 165.00–170.00. A buy signal: the price holds above 160.55. Stop Loss: below 160.00, Take Profit: 165.00–170.00.
- Alternative scenario: Breakout and consolidation below the level of 160.55 will allow the pair to continue declining to the levels of 158.50–155.00. A sell signal: the level of 160.55 is broken to the downside. Stop Loss: above 161.10, Take Profit: 158.50–155.00.
Main Scenario
Consider long positions from corrections above the level of 160.55 with a target of 165.00–170.00.
Alternative Scenario
Breakout and consolidation below 160.55 will allow the pair to continue declining to the levels of 158.50–155.00.
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 is underway. If the presumption is correct, USD/JPY will continue to increase to 165.00–170.00. The level of 160.55 is critical in this scenario as a breakout below it will enable the pair to continue declining to the levels of 158.50–155.00.
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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