A decline is possible.

Assumingly, an upward correction as wave B within the fourth wave (4) has formed. At present, last wave (c) of y of B seems to have finished forming and have taken the shape of an impulse with a truncated fifth wave. If the assumption is correct, it is logical to expect a decline towards 120.24. A critical for this scenario is the level of 123.44.

Trading tips

Sell the pair from corrections, below the level of 123.44 with the target at 120.24.

Alternative scenario

The breakout and consolidation above the level of 123.44 would allow the pair to continue growing to 124.40 within wave (c) of y of B.

USD/JPY: wave analysis

USD/JPY: wave analysis

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