Main scenario: consider short positions from corrections below the level of 111.66 with a target of 108.20 – 107.09.

Alternative scenario: breakout and consolidation above the level of 111.66 will allow the pair to continue rising to the levels of 113.50 – 115.00.

Analysis: Daily TM: apparently, a descending correction of larger degree finished forming as wave B, and wave С started developing, with the first wave (1) of С forming inside.

The third wave of smaller degree 3 of (1) continues developing on the H4 time frame, with wave i of 3 formed and a downside correction developing as wave ii of 3 inside. Wave (а) of ii appears to be unfolding on the H1 time frame, with wave v of (a) developing as part of it. If the presumption is correct, the pair will continue to drop to the levels of 108.20 – 107.09. The level of 111.66 is critical in this scenario as a breakout will enable the pair to continue growing to the levels of 113.50 – 115.00.

Price chart of USDJPY in real time mode

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