Main scenario: consider short positions from corrections below the level of 142.50 with a target of 127.38 – 121.66 once a correction is completed.
Alternative scenario: breakout and consolidation above the level of 142.50 will allow the pair to continue rising to the levels of 146.00 – 151.90.
Analysis: an ascending third wave of larger degree (3) is formed on the daily chart, and a descending correction presumably continues developing as the fourth wave (4). A corrective wave B of (4) is presumably nearing completion on the H4 chart, with wave с of В developing as its part. Apparently, the fifth wave of smaller degree (v) of c is developing on the H1 chart. After its completion, if this assumption is correct, the pair will continue to fall to 127.38 – 121.66. The level of 142.50 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 146.00 – 151.90.
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.
