Main scenario: consider short positions of corrections below the level of 132.76 with a target of 125.35 – 121.52.
Alternative scenario: break and consolidation above the level of 132.76 will allow the pair to continue to rise to the levels of 134.92 – 138.24.
Analysis: the upward third wave of greater degree (3) ended up developing on the daily chart, with wave 5 of (3) forming as its part. A downward correction seems to continue to develop as the fourth wave (4) on the H4 chart, with wave C of (4) forming as its part. On the H1 chart, the third wave of lesser degree iii of C appears to continue to form, with a local correction completed as wave (iv) of iii of C. Wave (v) of iii of C has begun to develop. If this assumption is correct, the pair will continue to fall to 125.35 – 121.52. The level of 132.76 is critical in this scenario because a break will allow the pair to continue growing to the levels of 134.92 – 138.24.
USDJPY price chart in real time mode
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