Analysis of wave counting:
In general, it is expected that during the trades of the past week, the pair USD / JPY started with a downward movement, losing about 200 pp and reached the level of 107.30 in the middle of the Friday session. Thus, due to the fact that the currency pair managed to gain a foothold under the minimum reached on April 17 (108.10), there appeared reasons to consider such price reduction as the process of formation of the 3rd wave, c, e, (B). If this is the case, the currency pair will likely continue to decline quotations to the next settlement target, located in the range between the levels of 106.60-106.50.
Goals for the downward wave option:
106.63 - 38.2% of Fibonacci
Goals for the upward wave option:
111.00 - 112.00
General conclusions and trading recommendations:
The pair USD / JPY continues to build a downward and composite wave ( B). This week, it is expected that the quotations will continue to decrease (within the limits of the wave c, e, (B)) with targets located near the estimated level of 106.63, which is equivalent to 38.2% of Fibonacci. The construction of the correctional wave 2, c, e, (B) is supposedly completed.