Main scenario: consider long positions from corrections above the level of 112.30 with a target of 115.00 – 116.00. 

Alternative scenario: breakout and consolidation below the level of 112.30 will allow the pair to continue declining to the levels of 110.83 – 109.012. 

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 chart, with wave i of 3 formed, a correction completed as wave ii of 3, and wave iii of 3 forming inside. Apparently, wave (iii) of iii is developing on the H1 chart. If this assumption is correct, the pair will continue to rise to 115.00 – 116.00. The level of 112.30 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 110.83 – 109.012.



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 LiteForex. 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.

Rate this article:

{{value}} ( {{count}} {{title}} )





Source link