Analysis of wave counting:
So without closing the "window" formed on Monday, yesterday's USD / JPY trades began with a downward movement, losing about 110 pp, and confidently entrenched below the level of the 109th figure at the end of the day. It can be assumed that the currency pair still made an attempt to confirm the transition to the stage of formation of the internal wave structure of the 1st wave, in the 3rd (or C), C, E, (B). If this is the case, the currency pair has prospects for continuing the decline in quotations and the subsequent breakdown of the level of 108.00.
Targets 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 2 or (B), C, E, (B) is completed, thus, the quotations are expected to fall within the limits of wave 3 or (C), C, E, (B) with targets near the estimated mark of 108.56, which is equivalent to 261.8% of Fibonacci and lower about 108 figures.