Analysis of wave counting:
After Friday's decline in prices, the pair USD / JPY held within a fairly narrow range yesterday, trading between the level of the 109th figure and the mark of 109.40. It can be assumed that the currency pair is still in the stage of forming the internal wave structure of the corrective 2nd wave, C, E, (B). If this is the case, the currency pair retains the potential, allowing it both to continue the growth of quotations to the upper generating line of the descending channel and to resume the decline at least to the level of 108.30.
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 tool continues to build the 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).
