Main scenario: consider long positions from corrections above the level of 109.08 with a target of 113.50 – 115.00.
Alternative scenario: breakout and consolidation below the level of 109.08 will allow the pair to continue declining to the levels of 107.16 – 106.07.
Analysis: Daily chart: 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 inside.
The third wave of smaller degree 3 of (1) continues developing on the H4 chart, with wave i of 3 formed and a downside correction completed as wave ii of 3 inside. Apparently, the third wave iii of 3 is developing on the H1 chart, with wave (iii) of iii forming inside, supposedly. If the presumption is correct, the pair will continue to rise to the levels of 113.50 – 115.00. The level of 109.08 is critical in this scenario as a breakout will enable the pair to continue declining to the levels of 107.16 – 106.07.
Price chart of USDJPY in real time mode
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