FX.co ★ USD/JPY wave analysis for August 2, 2011

Yesterday’s differently directed USD/JPY trading has slightly complicated the wave structure of the last three trading days, enabling us to interpret it as the 2nd wave in the estimated 3rd of the whole downside movement initiated July 8. If so, current recovery of the yen might grow stronger which in turn will enable the price to continue declining in the direction of target levels located up to the 74.50 level.