On the weekly chart, the third wave of the higher level 3 ended, within which the wave (5) of 3 ended, and a downward correction develops as the fourth wave 4. Now, the wave (A) of 4 is forming, within which the third wave of the lower level 3 of (А) is forming. If the assumption is correct, the USD/JPY pair will fall to the area of 131.42–124.30. In this scenario, critical stop loss level is 149.47.
Main scenario
Short positions will become relevant below the level of 149.47 with the targets at 131.42–124.30. Implementation period: 7 days and more.
Alternative scenario
A breakout and the consolidation of the price above the level of 149.47 will let the asset grow to the area of 155.29–162.00.
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