Analysis of wave counting:
Having started yesterday's trading with a significant "gap", the pair USD / JPY continued the slowly developing downward movement and by the beginning of the European session was able to work out the mark of 109.40. It can be assumed that despite this decline, the currency pair retained the potential to resume the growth of quotations and significantly complicate the wave structure of the 2nd wave (or B), C, E, (B). At the same time, after the rollback of the price from the high of last Thursday, there are no significant obstacles to the currency pairs transition to the stage of formation of the 3rd wave (or C), C, E, (B).
Targets 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 a wave C, E, (B). The assumed wave 2 or (B), C, E, (B) is completed, thus, the quotations are expected to fall within the limits of wave 3 or (C), C, E, (B) with targets near the estimated level of 108.56, which is equivalent to 261.8% of Fibonacci. Wave 2 or (B) can still take a more complex form.
