Analysis of wave counting:
Having failed to develop a more significant upward movement, yesterday's USD/JPY trades began with a decline and, losing almost 70 basis points, broke the level of the 111th figure in the afternoon. Thus, the emerging wave situation makes it possible to assume that the currency pair is still in the stage of formation of the wave c, in b, in a, in (C), which has complicated its wave structure even more. If this is the case, then before the beginning of the future wave c, in a, in (C), the currency pair will remain for some time near the lows already reached.
Targets for a downward wave option:
111.01 - 50.0% by Fibonacci
110.15 - 61.8% by Fibonacci
Targets for an upward wave option:
115.00 - 117.00
General conclusions and trading recommendations:
The trading instrument continues to build the upward section of the trend. Now the wave (C), its internal wave b, is being continued in a, with targets located near the estimated marks of 111.01 and 110.15, which corresponds to 50.0% and 61.8% of Fibonacci. After the completion of this wave is expected to resume the increase in quotations within the wave c, in a, in (C) with targets located above 115 figures. An unsuccessful attempt to break through the level of 111.01 may lead to the withdrawal of quotations from the lows reached.