Main scenario: consider short positions from corrections below the level of 131.25 with a target of 124.50 – 122.50.
Alternative scenario: breakout and consolidation above the level of 131.25 will allow the pair to continue rising to the levels of 135.00 – 140.00.
Analysis: The third wave of larger degree (3) continues developing on the daily chart, with wave 3 of (3) forming inside. On the H4 chart, the third wave of smaller degree iii of 3 looks completed and a corrective wave iv of 3 started developing. Wave (а) of iv appears to be unfolding on the H1 chart. If the presumption is correct, the pair will continue to drop to the levels of 124.50 – 122.50. The level of 131.25 is critical in this scenario as a breakout will enable the pair to continue growing to the levels of 135.00 – 140.00.
Price chart of USDJPY in real time mode
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