Main scenario: consider short positions from corrections below the level of 109.62 with a target of 106.75 – 105.77.
Alternative scenario: breakout and consolidation above the level of 109.62 will allow the pair to continue rising to the levels of 110.95 – 112.50.
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.
On the H4 time frame, the third wave of smaller degree 3 of (1) is developing, with wave i of 3 formed inside. Apparently, a descending correction is developing as wave ii of 3 on the H1 time frame, with wave (a) of ii formed and wave (b) of ii developing inside. If the presumption is correct, the pair will continue to drop to the levels of 106.75 – 105.77 after wave (b) of ii is completed. The level of 109.62 is critical in this scenario as the breakout will enable the pair to continue growing to the levels of 110.95 – 112.50.
Price chart of USDJPY in real time mode
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