The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 164.00 with a target of 151.76–148.87. A sell signal: the price holds below 164.00. Stop Loss: above 164.70, Take Profit: 151.76–148.87.
- Alternative scenario: Breakout and consolidation above 164.00 will allow the pair to continue rising to the levels of 166.50–170.00. A buy signal: the level of 164.00 is broken to the upside. Stop Loss: below 163.30, Take Profit: 166.50–170.00.
Main scenario:
Consider short positions from corrections below the level of 164.00 with a target of 151.76–148.87.
Alternative scenario
Breakout and consolidation above 164.00 will allow the pair to continue rising to the levels of 166.50–170.00.
Analysis
On the weekly time frame, an ascending wave of larger degree 3 has formed, a downward correction 4 has been completed, and wave 5 is developing. Apparently, the first wave of smaller degree (1) of 5 has formed and a bearish correction (2) of 5 is developing on the daily chart. On the H4 time frame, wave A of (2) is developing, with a local correction iv of A nearing completion as its part. If the presumption is correct, USD/JPY will continue to decline to the levels of 151.76–148.87. The level of 164.00 is critical in this scenario as a breakout above it will enable the asset to continue rising to the levels of 166.50–170.00.
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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