Main scenario: consider short positions from corrections below the level of 135.56 with a target of 128.92 – 124.90.
Alternative scenario: breakout and consolidation above the level of 135.56 will allow the pair to continue rising to the levels of 140.00 – 145.00.
Analysis: the third wave of larger degree (3) continues developing on the daily chart, with wave 3 of (3) formed inside. Supposedly, a descending correction started forming as the fourth wave 4 of (3). The wave of smaller degree а of 4 appears to be developing on the H1 chart. If this assumption is correct, the pair will continue falling to the levels of 128.92 – 124.90. The level of 135.56 is critical in this scenario as a breakout will enable the pair to continue growing to the levels of 140.00 – 145.00.
Price chart of USDJPY in real time mode
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