Analysis of wave counting:
In general, it is expected that yesterday's USD / JPY trades started with the resumption of the downward movement, losing about 120 pp and stopped before the level of the 108th figure in the afternoon. The current wave situation allows us to assume that the currency pair still completed the formation of a somewhat more complicated wave structure of the third wave, in the 1st, in the 3rd (or C), C, E, (B). If this is the case, then before continuing the decline in quotations, the currency pair will adjust to the level of 109.25 or even to 109.55.
Targets for the downward wave option:
108.00 - 106.00
Targets for the upward wave option:
109.25 - 50.0% of Fibonacci
109.55 - 61.8% of Fibonacci
General conclusions and trading recommendations:
The tool continues to build wave C, E, (B). The assumed wave 2 or (B), C, E, (B) is completed, thus, it is expected to continue decreasing quotations within the wave 1, 3 or (C), C, E, (B) with targets which are about 108 and 106 figures. As part of the construction of the correctional wave 4, growth has now started with targets located near the estimated levels of 109.25 and 109.55, which corresponds to 50.0% and 61.8% of Fibonacci.