The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above 157.85 with a target of 166.50–170.00. A buy signal: the price holds above 157.85. Stop Loss: below 157.20, Take Profit: 166.50–170.00.
- Alternative scenario: Breakout and consolidation below 157.85 will allow the pair to continue declining to the levels of 155.00–152.40. A sell signal: the level of 157.85 is broken to the downside. Stop Loss: above 158.50, Take Profit: 155.00–152.40.
Main Scenario
Consider long positions from corrections above 157.85 with a target of 166.50–170.00.
Alternative Scenario
Breakout and consolidation below 157.85 will allow the pair to continue declining to the levels of 155.00–152.40.
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. On the daily chart, the third wave of smaller degree (3) of 5 appears to be developing, with wave 3 of (3) forming as its part. Wave i of 3 has formed on the H4 chart, and wave ii of 3 has presumably been completed as a local correction. If the presumption is correct, USD/JPY will continue to rise to 166.50–170.00 within wave iii of 3. The level of 157.85 is critical in this scenario as a breakout below it will enable the pair to continue declining to the levels of 155.00–152.40.
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.
