Analysis of wave counting:
North Korean missile launches provoked another round of strengthening the yen yesterday, which in turn allowed the pair USD / JPY to continue the price decline to around 108.25 and only after that to rebound by 150 pp from the already reached minimum. Thus, in connection with the breakdown of the currency pair of previously reached minimum, there were grounds for speculation that after August 11, it was in the stage of formation of the corrective 2nd wave (or B), in the increasingly more complex wave C, E, (B). If this is the case, then during the development of the wave c, 2nd (or B), C, E, (B), the currency pair will continue to show a marked increase in quotations up to the level of 110.50.
Targets for the downward wave option:
108.56 - 261.8% of Fibonacci
108.00
Targets for the upward wave option:
110.08 - 23.6% of Fibonacci
110.92 - 38.2% of Fibonacci
General conclusions and trading recommendations:
The tool continues to build wave C, E, (B). The assumed wave 1, C, E, (B) is completed, thus, the quotations are expected to increase within the limits of wave c, 2, C, E, (B) with targets near the marks of 110.08 and 110.92, which is equivalent to 23.6% and 38.2% of Fibonacci. The MACD convergence also warns about the willingness of the instrument to build an upward wave.