Main scenario: consider short positions from corrections below the level of 110.59 with a target of 108.20 – 107.09.
Alternative scenario: breakout and consolidation above the level of 110.59 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 as part of it.
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. Apparently, wave (а) of ii and wave (b) of ii formed on the H1 time frame, and wave (c) of ii is developing at the moment. If the presumption is correct, the pair will continue to drop to the levels of 108.20 – 107.09. The level of 110.59 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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