Analysis of wave counting:
At the beginning of yesterday's European session, the repeated breakdown of the level of the 113th figure led to the rollback of the pair USD / JPY by almost 90 pp, to the 112.30 level. At the same time, it can be assumed that the currency pair remained in the stage of formation of the first generating waves, in the composition of an increasingly more complex form of wave c, in the future (C). At the same time, while maintaining the potential for the resumption of the growth of quotations, the currency pair can continue the designated downward movement to the level of 111.40-111.45 and thereby significantly be complicating the internal wave structure of wave b, (C).
Targets for the downward wave option:
111.43 - 23.6% of Fibonacci
110.64 - 38.2% of Fibonacci
Goals for the upward wave option:
113.00 - 114.00
General conclusions and trading recommendations:
The tool complicates its wave structure, which can now require the introduction of additions and adjustments at any time. The wave C, E, (B), presumably, completed its construction. If this is the case, then now the construction of the first waves in the composition of the future (C) with goals between 113 and 114 continues. Also now, it is possible to reduce quotations within the corrective wave b, with targets near the marks of 111.43 and 110.64, which is equivalent to 23.6% and 38.2% of Fibonacci.
