FX.co ★ Wave analysis of the USD/JPY currency pair for December 5, 2017

Analysis of wave counting:

Having started yesterday's auction with a "window" of 60 basis points, the USD/JPY pair was able to test the level of the 113th figure and only after that retreated to the level of 112.35. Thus, it is possible assume that the currency pair made an attempt to go to the stage of formation of the internal wave structure of the third wave, in a, in c, in a, in (C). At the same time, under the existing conditions, there are no significant obstacles to the resumption of the decline in quotations to 114.15, and even more complication of wave b, in a, in (C).

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. The assumed wave b, in a, in (C) has completed its construction near the mark of 111.01, which corresponds to 50.0% of Fibonacci. If this assumption is correct, then the increase in quotations will continue with targets above 115 figures, within the limits of wave c, in a, in (C).