The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 160.70 with a target of 152.10–145.50. A sell signal: the price holds below 160.70. Stop Loss: above 161.20, Take Profit: 152.10–145.50.
- Alternative scenario: Breakout and consolidation above the level of 160.70 will allow the pair to continue rising to the levels of 163.10–165.00. A buy signal: the level of 160.70 is broken to the upside. Stop Loss: below 160.20, Take Profit: 163.10–165.00.
Main Scenario
Consider short positions from corrections below the level of 160.70 with a target of 152.10–145.50.
Alternative Scenario
Breakout and consolidation above 160.70 will allow the pair to continue rising to the levels of 163.10–165.00.
Analysis
An ascending third wave of larger degree 3 has formed on the weekly chart, and a bearish correction is developing as the fourth wave 4. On the daily time frame, wave (B) of 4 has presumably been completed, and a descending wave (C) of 4 has started to form. The first wave of smaller degree i of 1 of (C) is unfolding on the H4 chart, with wave (i) of i formed as its part. A local correction has likely been completed as wave (ii) of i. If the presumption is correct, USD/JPY will continue to decline to the levels of 152.10–145.50. The level of 160.70 is critical in this scenario as a breakout above it will enable the pair to continue rising to the levels of 163.10–165.00.
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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