Main scenario: consider short positions from corrections below the level of 152.11 with a target of 140.32 – 133.16.
Alternative scenario: breakout and consolidation above the level of 152.11 will allow the pair to continue rising to the levels of 156.00 – 160.00.
Analysis: a bullish third wave of larger degree (3) presumably finished developing on the daily chart, with wave 5 of (3) formed inside. A downside correction started developing as the fourth wave (4) on the H4 chart, with wave А of (4) forming inside. Apparently, the first wave of smaller degree i of A is formed, a local correction developed as the second wave ii of A, and the third wave iii of A is unfolding on the H1 chart. If this assumption is correct, the pair will continue to fall to the levels of 140.32 – 133.16. The level of 152.11 is critical in this scenario as a breakout will enable the pair to continue growing to the levels of 156.00 – 160.00.
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. 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 2004/39/EC.