Analysis of the wave counting:
At the beginning of yesterday's European session, the pair USD / JPY resumed the upward movement that had been indicated the day before, having added more than 100 bp in price and stopped at several points from the level of the 112th figure at the end of the day. The current wave situation allows one to assume that the currency pair has attempted to complete the formation of the first wave and designate the beginning of the second wave, as part of the future C, E, (B). If this is the case, the currency pair may continue to grow quotations and at least work out the level of 112.00, or even reach the level of 112.55.
Targets for a downward wave option:
110.77 - 127.2% by Fibonacci
110.20 - 161.8% by Fibonacci
Targets for an upward wave option:
112.09 - 38.2% by Fibonacci
112.55 - 50, 0% by Fibonacci
General conclusions and trading recommendations:
The instrument completed the construction of the wave E, C, (B). In the framework of the construction of wave 3, C, E, (B), the decline in quotations may resume with targets near the calculated levels of 110.77 and 110.20, which is equivalent to 127.2% and 161.8% of Fibonacci. An unsuccessful attempt to break through the level of 110.77 led to the withdrawal of quotations from the achieved minimum and the construction of wave 2 with targets located near the marks 112.09 and 112.55, which equates to 38.2% and 50.0% Fibonacci.
