Main scenario: consider long positions from corrections above the level of 129.40 with a target of 138.24 – 140.57. 

Alternative scenario: breakout and consolidation below the level of 129.40 will allow the pair to continue declining to the levels of 127.32 – 121.39. 

Analysis: the upward third wave of larger degree (3) finished developing on the daily chart, with wave 5 of (3) formed as its part. A descending correction appears to have formed as the fourth wave (4) on the H4 chart, with wave C of (4) completed inside. Apparently, the fifth wave (5) started developing on the H1 chart, with the first counter-trend wave of smaller degree i of 1 of (5) forming inside. If the presumption is correct, the pair will continue to rise to the levels of 138.24 – 140.57. The level of 129.40 is critical in this scenario as a breakout will enable the pair to continue declining to the levels of 127.32 – 121.39.

Price chart of USDJPY in real time mode

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