Main scenario: consider short positions from corrections below the level of 132.88 with a target of 125.35 – 121.52.
Alternative scenario: breakout and consolidation above the level of 132.88 will allow the pair to continue rising to the levels of 138.24 – 140.57.
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 continue developing as the fourth wave (4) on the H4 chart, with wave C of (4) forming as its part. The third wave of smaller degree iii of C appears to have started developing on the H1 chart, with wave (iii) of iii of C forming inside. If this assumption is correct, the pair will continue to drop to 125.35 – 121.52. The level of 132.88 is critical in this scenario as a breakout will enable the pair to continue growing to the levels of 138.24 – 140.57.
Price chart of USDJPY in real time mode
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