The article covers the following subjects:
Major Takeaways
- Main scenario: Once the correction has been completed, consider short positions below the level of 160.52 with a target of 151.76–148.92. A sell signal: the correction ends and the price holds below 160.52. Stop Loss: above 161.10, Take Profit: 151.76–148.92.
- Alternative scenario: Breakout and consolidation above the level of 160.52 will allow the pair to continue rising to the levels of 163.90–166.50. A buy signal: the level of 160.52 is broken to the upside. Stop Loss: below 159.90, Take Profit: 163.90–166.50.
Main Scenario
Consider short positions below 160.52 with a target of 151.76–148.92 once the correction is completed.
Alternative Scenario
Breakout and consolidation above 160.52 will allow the pair to continue rising to the levels of 163.90–166.50.
Analysis
On the weekly time frame, an ascending third wave of larger degree 3 has formed, a downward correction has been completed as the fourth wave 4, and the fifth 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, within which wave i of A has presumably been completed and a local correction ii of A is nearing completion. If the presumption is correct, USD/JPY will continue to decline to 151.76–148.92 after the correction ends. The level of 160.52 is critical in this scenario as a breakout above it will enable the pair to continue rising to the levels of 163.90–166.50.
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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