Analysis of wave counting:
As expected, practicing the divergence of MACD during the trades of the past week, the pair USD / JPY began with a downward movement, losing more than 100 pp in price and fixed under the level of the 112th figure on Friday. At the same time, there were grounds for considering the maximum of October 6 (113,43) as the vertex, which assumed a rather complicated form, the waves a, a, (C). If this is the case, in the process of forming the wave structure of wave b, a, (C), the currency pair may continue to decline quotations in the direction of level 111.00.
Targets for the downward wave option:
112.00 - 110.00
Targets for the upward wave option:
113.98 - 23.6% of Fibonacci
General conclusions and trading recommendations:
The pair USD / JPY continues to build the upward wave (C). Thus, the increase in quotations can continue in the wave a, in the future (C) with targets located near the calculated mark of 113.98, which corresponds to 23.6% of Fibonacci. Now, it is also possible to withdraw quotes from local maximum within the corrective wave b with targets that are about 111 figures and below.
