Analysis of wave counting:
In general, it is expected that during the yesterday's trading, the pair USD / JPY was able to continue the development of the downward movement and in the second half of the day, it was able to work out the mark of 111.55. Thus, it can be assumed that the currency pair was still in the formative stage of a five-wave structure, the 3rd wave, the 1st, the future wave C, E, and (B). If this is the case, despite the strong divergence of the MACD, the currency pair retains the potential to further reduce the quotations to the 110.75-110.25 area.
Objectives for a downward wave option:
111.00 - 110.00
Objectives for an upward wave option:
113.00
114.72 - 127.2% by Fibonacci
115.00
General conclusions and trading recommendations:
The instrument supposedly completed the construction of the wave E, C, (B). Within the framework of the construction of wave C, E, (B), the reduction of quotations can continue with the goals of about 111 and 110 figures (these goals will be further clarified). A small MACD convergence warns of the readiness of the tool to build a corrective wave.