The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above 162.60 with a target of 166.50–170.00. A buy signal: the price holds above 162.60. Stop Loss: below 162.00, Take Profit: 166.50–170.00.
- Alternative scenario: Breakout and consolidation below 162.60 will allow the pair to continue declining to the levels of 160.96–159.86. A sell signal: the level of 162.60 is broken to the downside. Stop Loss: above 163.20, Take Profit: 160.96–159.86.
Main Scenario
Consider long positions from corrections above 162.60 with a target of 166.50–170.00.
Alternative Scenario
Breakout and consolidation below 162.60 will allow the pair to continue declining to the levels of 160.96–159.86.
Analysis
On the weekly time frame, ascending wave 3 of larger degree has formed, downward correction 4 has been completed, and wave 5 is developing. On the daily chart, wave (3) of 5 of smaller degree is developing, with wave 3 of (3) forming as its part. On the H4 time frame, wave i of 3 and correction ii of 3 have ended, and wave iii of 3 continues developing. If the presumption is correct, USD/JPY will continue to rise to 166.50–170.00. The level of 162.60 is critical in this scenario as a breakout below it will enable the pair to continue declining to the levels of 160.96–159.86.
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.
