Analysis of wave counting:
In general, it is expected that yesterday's USD / JPY pair trades started with the resumption of the downward movement, losing about 80 pp and reached the level of 108.63 in the second half of the day. Thus, it can be assumed that the currency pair remained in the stage of formation of the 5th wave approaching its completion, in the 1st, C, E, (B). If this is the case, then during the development of the wave structure of this 5th wave, in the 1st, C, E, (B), the currency pair will continue to decline quotations at least to the level of 108.30 or even to level 108th figure.
Targets for the downward wave option:
108.30 - 100.0% by Fibonacci
108.00
Targets for the upward wave option:
110.00 - 111.00
General conclusions and trading recommendations:
The instrument continues to build wave C, E, (B). In the framework of the construction of wave 5, 1, C, E, (B), the reduction of quotes continues with the targets near the calculated mark of 108.30, which equates to 100.0% Fibonacci and lower about 108 figures. After the completion of this wave, it is expected to increase quotes within the wave 2, C, E, (B). The downward corridor preserves the prospect of lowering the quotes. The MACD convergence warns of the willingness of the instrument to build an upward wave.
