Analysis of wave counting:
Last week, the USD / JPY traded from the upward movement and only after the price rose to the level of 112.70, rolled back more than 100 percentage points from the maximum reached on Thursday. Thus, it can still be assumed that, having completed the formation of the wave c, e, (B), the currency pair probably indicated the beginning of the future wave (C). At the same time, the currency pair retained its potential, allowing it to resume the decline in quotations and significantly complicate the wave structure not only of waves c, e, (B), but possibly the entire wave e, (B).
Targets for the downward wave option:
106.63 - 38.2% of Fibonacci
Targets for the upward wave option:
112.00
113.98 - 23.6% of Fibonacci
General conclusions and trading recommendations:
The pair USD / JPY presumably completed the construction of wave (B). If this is the case, then the increase in quotes will continue within the first waves in the future wave (C) with targets located near the calculated mark of 113.98, which corresponds to 23.6% of Fibonacci. It is also possible to withdraw quotes from local highs within the correctional wave.
