Analysis of wave counting:
As expected, the USD / JPY pair started trading from the upward movement last week, which led to a breakdown of the 114th figure level on Friday. The resulting wave situation allows us to assume that the currency pair remained in the formation step close to its completion of the wave c, in the wave b, which took on a much more complicated form, in e, in (B). If this is the case, the development of the targets in the region of 114.60 may lead to a price reversal against the dollar, which in turn will mark the start of the future wave C, in e, in (B).
Targets for a downward wave option:
106.63 - 38.2% by Fibonacci
Targets for an upward wave option:
114.60 - 61.8% by Fibonacci
116.13 - 76.4% by Fibonacci
General conclusions and trading recommendations:
The pair USD / JPY continues to build the wave (B). This week, the quotations may continue to rise (within the limits of c, in b, in e, in (B)) with targets located near the estimated levels of 114.60 and 116.13, which equates to 61.8% and 76.4% by Fibonacci. After the completion of this wave, it is expected to resume decline in quotations within the limit c, e, in (C).
