Analysis of wave counting:
As expected, yesterday's USD / JPY trades started from the upward movement, adding more than 80 pp in the price and managed to work out the mark of 110.40 in the second half of the day. Thus, we can assume that the currency pair was in the stage of formation of the wave c, 2nd (or B), C, E, (B), which by the close of the American session took a completely completed form. If this is so, then practically from the already achieved maximum, the currency pair will resume the decline of quotations and, thus, can indicate the beginning of the 3rd wave (or C), C, E, (B).
The objectives for the downward wave option:
108.56 - 261.8% of Fibonacci
108.00
Targets for the upward wave option:
110.92 - 38.2% of Fibonacci
111.60 - 50.0% of Fibonacci
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, the quotations are expected to increase within the limits of wave c, 2, C, E, (B) with targets near the marks of 110.92 and 111,60, which is equivalent to 38.2% and 50.0% of Fibonacci. After its completion, a new extended downward trend segment is expected.
