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

Analysis of wave counting:

Resuming Tuesday's downward movement, the USD/JPY pair lost about 160 basis points and on Friday stopped before the level of the 111th figure. The wave situation that develops in this case makes it possible to consider the highs reached at the end of October, as waves vertex a in a, in the composition of the wave began to complicate its wave structure (C). If this is the case, then practically at the lows reached on Friday, the currency pair can complete wave b, in a, in (C) and having started the growth of quotes, go to the stage of the formation of the wave c in a, in (C).

Targets for a downward wave option:

111.01 - 50.0% by Fibonacci

110.14 - 61.8% by Fibonacci

Targets for an upward wave option:

115.43 - 61.8% by Fibonacci

116.32 - 76.4% by Fibonacci

General conclusions and trading recommendations:

The USD/JPY pair continues to build the upward wave (C). Thus, the increase in quotes may resume within the limits of the wave c, in a, in the future (C) with the targets located near the estimated marks 115.43 and 116.32, which corresponds to 61.8% and 76.4% Fibonacci (these targets will be revised). The assumed wave b continues its construction with targets near the estimated marks of 111.01 and 110.14, which equates to 50.0% and 61.8% of Fibonacci.