Main scenario: consider short positions from corrections below the level of 129.81 with a target of 124.64 – 122.57.
Alternative scenario: breakout and consolidation above the level of 129.81 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 in the daily chart, with wave 3 of (3) forming inside. In 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 have formed in the hourly chart, wave (b) of iv has also completed, and wave (c) of iv is developing. If the presumption is correct, the pair will continue to drop to the levels of 124.64 – 122.57. The level of 129.81 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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