Analysis of wave counting:
The attempt to gain a foothold at 108.50 ended yesterday with failure and by the end of the day, the price for the pair USD / JPY fell by more than 90 pp from the minimum reached in mid-trading (108.45). Thus, it can be assumed that the currency pair remained in the stage of formation of the 1st wave, in the 3rd (or C), C, E, (B), while completing its internal 3rd wave. If this is the case, then from the high of the past day or slightly higher, the currency pair will resume the decline of quotations, with the prospect of testing the level of the 108th figure.
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 1, 3 or (C), C, E, (B), which are around the estimated level of 108.56, which is equivalent to 261.8% of Fibonacci, and below about 108 figures.
