Analysis of wave counting:
After the speech of the head of the Fed, J.Jellen in Jackson-Hole, the pair USD / JPY also began a decline against the dollar and stopped at 109.10 at the end of the day. It can be assumed that despite this decline, the currency pair remained in the stage of formation of the first generating waves in the composition of the corrective 2nd wave, C, E, (B). At the same time, it can not be ruled out that the currency pair will continue to show a downward movement and thereby give the 5th wave, in the 1st, C, E, (B) a much more complex form.
Targets for the downward wave option:
108.30 - 100.0% of 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). The assumed wave 1, C, E, (B) is completed, thus, an increase in quotations is expected within the framework of wave 2, C, E, (B) with targets located about 110 and 111 figures. The downward corridor preserves the prospect of lowering the quotes. The break of the minimum of August 18 will indicate the readiness of the instrument to complicate the internal wave structure of the 1st wave, C, E, (B).
