Analysis of wave counting:
Despite the efforts made in the course of yesterday's trading, the USD/JPY pair failed to register above the level of 110.50, having settled to the level of 109.90 by the end of the day. The current wave situation allows us to assume that the currency pair has completed the formation of the wave c, in the 2nd (or B), in C, in E, in (B), and potentially the entire 2nd wave (or B), in C, in E, in (B). If this is the case, the currency pair may continue to show a decline in quotations, at least to the level of the 108th figure.
Objectives for a downward wave option:
108.56 - 261.8% by Fibonacci
108.00
Objectives for an upward wave option:
110.92 - 38.2% by Fibonacci
111.60 - 50.0% by Fibonacci
General conclusions and trading recommendations:
The trading instrument continues to build the C wave, in E, in (B). The assumed wave 1, in C, in E, in (B) is completed, thus, the quotations are expected to increase within the limits of wave c, in 2, in C, in E, in (B) with targets near marks of 110.92 and 111,60, which is equivalent to 38.2% and 50.0% of Fibonacci. If this wave is already completed and implemented, respectively, a 3-wave structure, then now it is possible to resume the decline in quotes within the wave 3 or C, in C, in E, in (B).
