FX.co ★ Wave analysis of the USD / JPY currency pair for August 24, 2017

Analysis of wave counting:

Yesterday's USD / JPY trades started with a downward movement, losing about 90 pp and broke the level of the 109th figure at the end of the day. The resulting wave situation allows us to assume that the currency pair can continue to decrease quotations and thereby significantly complicate the internal wave structure of the 5th wave, 1st, C, E, (B). At the same time, practically from the lows of the past day, the currency pair can resume the upward movement and the formation of the corrective 2nd wave, C, E, (B).

Targets for the downward wave option:

108.30 - 100.0% by Fibonacci

108.00

Targets for the upward wave option:

110.00 - 111.00

General conclusions and trading recommendations:

The instrument continues to build wave C, E, (B). The assumed wave 5, 1, C, E, (B) is completed, thus, the increase of quotations within the framework of wave 2, C, E, (B) with the targets about 110 and 111 figures is expected. The downward corridor preserves the prospect of lowering the quotes. The break of the minimum of August 18 will indicate the readiness of the instrument to complicate the wave structure of the 1st wave, C, E, (B).