Analysis of wave counting:
In general, it is expected that during the trades of the past week, the pair USD / JPY pair began with the continuation of the downward movement, having lost about 160 bp, and completed the Friday session by testing the level of the 111th figure. The current wave situation allows us to assume that the currency pair has confirmed the completion of wave b and the transition to the stage of forming the wave c, e, (B). If this is so, then the currency pair has good prerequisites for further lowering the quotations to the level of 108.00 or even to the level of 106.50.
Targets for a downward wave option:
108.01 - 61.8% by Fibonacci
106.63 - 38.2% by Fibonacci
Targets for an upward wave option:
113.00 - 114.00
General conclusions and trading recommendations:
The pair USD / JPY continues to build a downward and composite wave (B). This week, a decrease in quotations is expected (within the limits of c, e, (B)) with targets located near the estimated levels of 108.01 and 106.63, which is equivalent to 61.8% and 38.2% Fibonacci. The wave b, e, (B) is most likely completed, although there are certain chances of complicating it.
