Analysis of wave counting:
Failing to execute the turn, during the Friday's trading, the pair USD / JPY continued its decline, losing about 60 pp and reached the level of 111.70 in the second half of the day. Thus, due to the fact that the price managed to consolidate below the level of the 112th figure, the emerging wave situation allows us to consider the maximum of October 6 (113.43) as the top of the wave a, assumed to be a five-wave structure, in the future (C). If this is the case, then during the development of wave b, (C), the currency pair may continue the downward movement in the direction of level 111.00.
The targets for the downward wave option:
111.09 - 38.2% of Fibonacci
110.37 - 50.0% of Fibonacci
The targets for the upward wave option:
113.53 - 38.2% of Fibonacci
115.00 - 117.00
General conclusions and trading recommendations:
The instrument continues to complicate its wave structure, which may require additions and adjustments at any time. Now the wave (C), its internal wave b, is being constructed, with targets located near the calculated marks of 111.09 and 110.37, which equates to 38.2% and 50.0% of Fibonacci. The MACD convergence warns of a possible withdrawal of quotations from the minimum reached, which may be a correction wave in the composition of b.
