Analysis of wave counting:
Having failed to continue the decline that began on Thursday, the USD / JPY pair started trading on Friday with an upward movement, adding about 120 pp in price and tested the 111th figure level at the end of the day. The current wave situation allows us to assume that the currency market has already completed the process of forming not only the 3rd, but also the 4th wave in the composition of the future C, E, (B). If this is the case, then from the maximum of the last day of the past week, or after some complication of the 4th wave, C, E, (B), the currency pair will resume the decline of quotes, thereby indicating the beginning of the 5th wave in this C, E, (B).
Targets for a downward wave option:
109.79 - 61.8% by Fibonacci
108.30
Targets for an upward wave option:
111.00 - 112.00
General conclusions and trading recommendations:
The instrument completed the construction of the wave E, C, (B). Within the framework of the construction of wave 3, C, E, (B), the decrease in quotations may resume with targets near the level of 109.79, which is equivalent to 61.8% Fibonacci, and lower about 108 figures. The correction wave 4 in the composition of C, E, (B) can complicate its internal wave structure.