Analysis of wave counting:
After a decline to 109.55, in the second half of Friday's trading, the pair USD / JPY resumed the upward movement and retreated by more than 90 pp from the already reached minimum at the close of the American session. The resulting wave pattern allows us to assume that the 2nd wave (or B), C, E, (B) can significantly complicate its wave structure and the currency pair will continue to rise in quotations to the level of the 111th figure. At the same time, the currency pair retained the potential allowing it to continue the decline that had already begun and yet to designate the beginning of the 3rd wave (or C), C, E, (B).
The objectives for the downward wave option:
108.56 - 261.8% of Fibonacci
108.00
Targets for the upward wave option:
110.92 - 38.2% of Fibonacci
111.60 - 50.0% of Fibonacci
General conclusions and trading recommendations:
The tool continues to build a 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 110.92 and 111.60, which is equivalent to 38.2% and 50.0% of Fibonacci. If this wave is already completed and adopted, respectively, a 3-wave structure, now it is possible to resume the decline of quotations within wave 3 or C, C, E, (B) with targets below 108.56, which corresponds to 261.8% of Fibonacci.