USDJPY: Elliott wave analysis and forecast for 17.12.21 – 24.12.21

Main scenario: short positions will be relevant on corrections below the level of 114.28 with a target of 112.30 – 111.54.

Alternative scenario: breakout and consolidation above the level of 114.28 will allow the pair to continue rising to the levels of 116.50 – 118.00.

Analysis: an ascending wave of larger degree C has presumably started forming on the daily chart, with the third wave 3 of (1) of С unfolding as part of it. H4 chart: a correction has completed as wave ii of 3, and wave iii of 3 has formed. Apparently, a local correction continues forming as the fourth wave of smaller degree iv of 3 in the H1 timeframe, with waves (а) of iv and (b) of iv completed and wave (c) of iv developing inside. If the presumption is correct, the pair will continue to fall to levels of 112.30 – 111.54. The level of 114.28 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 116.50 – 118.00.