USDJPY Bullish Trend Predicted by Elliott Wave Analysis

A technical analysis of the USD/JPY pair using the Elliott Wave Theory suggests a bullish trend in the short term. The main scenario predicts that long positions can be taken from corrections above 162.60, with a target of 166.50-170.00. A buy signal is triggered when the price holds above 162.60, while a stop loss below 162.00 and take profit between 166.50-170.00 are recommended.

On the other hand, if the breakout and consolidation below 162.60 occur, it will allow the pair to continue declining to the levels of 160.96-159.86. A sell signal is triggered when the level of 162.60 is broken to the downside, with a stop loss above 163.20 and take profit between 160.96-159.86.

The analysis is based on the weekly time frame, where ascending wave 3 of larger degree has formed, downward correction 4 has been completed, and wave 5 is developing. The H4 time frame shows that wave i of 3 and correction ii of 3 have ended, and wave iii of 3 continues developing.