Analysis of wave counting:
The attempt to test the level of 109.50 failed and resuming the upward movement, the pair USD / JPY was able to add more than 170 pp in price in the middle of the day and completed the Friday's trading near the level of the 111th figure. Thus, despite the significant growth of quotations, the emerging wave situation suggests that the currency pair was still in the formative stage of a somewhat extended form of wave e, in the 2nd wave (or B), C, E, (B). If this is the case, the currency pair can resume the decline at any time and still indicate the beginning of the 3rd wave (or C), C, E, (B). At the same time, in the case of further price growth, there will be grounds to consider the possibility of the currency pair's transition to the resumption of the formation of the main upward trend in the future wave (C).
Targets for the downward wave option:
107.00 - 106.00
Targets for the upward wave option:
111.00 - 112.00
General conclusions and trading recommendations:
The instrument continues to build the wave C, E, (B). The assumed wave 2 or (B), C, E, (B) has complicated its internal wave structure and is now continuing to increase within its internal wave e with targets about 111 figures. In the framework of the construction of the downward wave of 3 (or C), C, E, (B), a resumption of the lowering of quotations is expected in the near future with targets below 107 figures. The MACD divergence warns about the tool's readiness to decrease.
