Analysis of wave counting:
Yesterday's USD/JPY trades started with an upward movement and, adding about 60 bp in price, finished the day near the level of 109.50. At the same time, under the conditions of persistent uncertainty, the currency pair can resume the decline of quotations and thereby give the 5th wave, in the 1st, in C, in E, in (B), a much more complicated form. At the same time, there is a possibility that the currency pair will continue to continue the designated upward movement and confirm the transition to the stage of formation of the corrective 2nd wave, in C, in E, in (B).
Objectives for a downward wave option:
108.30 - 100.0% Fibonacci retracement
108.00
Objectives for an upward wave option:
110.00 - 111.00
General conclusions and trade recommendations:
The trading instrument continues to build the C wave, in E, in (B). The assumed wave 5, in 1, in C, in E, in (B) is completed, thus, the increase of quotations within the framework of wave 2, in C, in E, in (B) with the targets, about 110 and 111 figures, is expected. The downward corridor preserves the prospect of lowering the quotes. The break of the minimum of August 18 will indicate the readiness of the trading instrument to complicate the wave structure of the 1st wave, in C, in E, in (B).
