Main scenario: consider long positions from corrections above the level of 131.44 with a target of 140.00 – 145.00.
Alternative scenario: breakout and consolidation below the level of 131.44 will allow the pair to continue declining to the levels of 124.90 – 121.57.
Analysis: the third wave of larger degree (3) continues developing on the daily chart, with wave 3 of (3) forming as its part. Supposedly, the fifth wave of smaller degree v of 3 keeps on forming on the H4 chart. Wave (iii) of v appears to have formed on the H1 chart, and a local correction is coming to its end as wave (iv) of v. If the presumption is correct, the pair will continue to rise to the levels of 140.00 – 145.00. The level of 131.44 is critical in this scenario as a breakout will enable the pair to continue declining to the levels of 124.90 – 121.57.
Price chart of USDJPY in real time mode
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