Main scenario: consider short positions from corrections below the level of 110.32 with a target of 107.46 – 106.75.
Alternative scenario: breakout and consolidation above the level of 110.32 will allow the pair to continue rising to the levels of 112.00 – 113.50.
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.
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 (a) of ii formed as part of the downside correction. Apparently, wave (b) of ii finished forming and wave (c) of ii started developing on the H1 time frame. If the presumption is correct, the pair will continue to drop to the levels of 107.46 – 106.75. The level of 110.32 is critical in this scenario as a breakout will enable the pair to continue growing to the levels of 112.00 – 113.50.
Price chart of USDJPY in real time mode
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