Main scenario: consider short positions from corrections below the level of 137.84 with a target of 133.16 – 127.32.
Alternative scenario: breakout and consolidation above the level of 137.84 will allow the pair to continue rising to the levels of 142.20 – 143.75
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) continuing forming inside. Apparently, the fifth wave of smaller degree v of A is developing on the H1 chart, with wave (iv) of v completed as its part. Wave (v) of v is currently developing. If the presumption is correct, the pair will continue to drop to the levels of 133.16 – 127.32. The level of 137.84 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 142.20 – 143.75.
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.
