Analysis of wave counting:
During the Friday's trading, the pair USD / JPY continued the descending movement that began on Wednesday, having lost more than 110 pp and reached 107.30 in the middle of the day. The resulting wave situation suggests that the currency pair still completed the formation of the somewhat extended form of the 3rd wave, 1st, 3rd (or C), C, E, (B). If this is so, then the already marked growth of quotations can be further developed, with the prospect of rolling back prices down to the level of the 109th figure.
Targets for the downward wave option:
107.00 - 106.00
Targets for the upward wave option:
108.52 - 38.2% of Fibonacci
108.89 - 50.0% of Fibonacci
General conclusions and trading recommendations:
The tool continues to build wave C, E, (B). The expected wave 2 or (B), C, E, (B) is completed, thus, it is expected that the quotations will continue to decrease within the framework of wave 1, 3 or (C), C, E, (B) with goals which are about 107 and 106 figures. Within the framework of constructing the correctional wave 4, 1, the growth has now started with targets located near the estimated marks 108.52 and 108.89, which corresponds to 38.2% and 50.0% of Fibonacci.
