FX.co ★ Wave analysis of the USD / JPY currency pair. Weekly review

Analysis of wave counting:

As expected, the pair USD / JPY traded from the upward movement last week, however, after the price rose to the level of the 111th figure by the close of the Friday session, it fell to the level of 108.60. At the same time, it seems that the currency pair has already completed not only the 1st but also the 2nd wave, in the 1st, c, e, (B). If this is the case, then despite the significant divergence of the MACD, the currency pair may continue to decline quotations to the level of 107.00 or to the level of 106.50.

Targets for the downward wave option:

108.01 - 61.8% by Fibonacci

106.63 - 38.2% by Fibonacci

Goals for the upward wave option:

113.00 - 114.00

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 quotes will continue to decrease (within the limits of the wave c, e, (B)) with targets located near the estimated marks of 108.01 and 106.63, which equates to 61.8% and 38.2% of Fibonacci. An unsuccessful attempt to break through the mark of 108.01 may lead to the withdrawal of quotations from the minimum reached. The MACD convergence warns of the willingness of the instrument to raise quotes.