Main scenario: consider long positions from corrections above the level of 121.83 with a target of 128.00 – 130.00.
Alternative scenario: breakout and consolidation below the level of 121.83 will allow the pair to continue declining to the levels of 119.07 – 114.57.
Analysis: the third wave of larger degree 3 presumably continues developing on the daily chart, with wave iii of 3 forming as its part. The third wave of smaller degree (iii) of iii is formed, corrective wave (iv) of iii has finished developing, and the fifth wave (v) of iii is forming on the H4 chart. Wave v of (v) appears to be nearing completion on the H1 chart. If this assumption is correct, the pair will continue to rise to 128.00 – 130.00 once a local correction iv of 3 is completed. The level of 121.83 is critical in this scenario as a breakout will enable the pair to continue declining to the levels of 119.07 – 114.57.
Price chart of USDJPY in real time mode
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