Analysis of wave counting:
The breakthrough of the maximum reached on October 23 (114.10) provoked yesterday the pullback of the price for the pair USD / JPY by more than 70 pp, to the level of 113.50. At the same time, we can assume that despite the increase to 114.25, the currency pair remained in the stage of formation, which significantly complicated its wave structure of the 2nd wave, c, (C). If this is the case, then before indicating the beginning of the third wave, c, (C), the currency pair may continue to decline and still fulfill the calculated target for the 2nd wave, c, (C), located at 113.15.
Targets for the downward wave option:
113.15 - 38.2% of Fibonacci
112.86 - 50.0% of Fibonacci
Goals for the upward wave option:
115.00 - 117.00
General conclusions and trading recommendations:
The tool continues to complicate its wave structure, which may require the introduction of additions and adjustments at any time. Now the wave (C) is being constructed, and the construction of its internal wave 2, c, with targets located near the calculated marks of 113.15 and 112.86, which corresponds to 38.2% and 50.0% of Fibonacci. After the completion of this wave, a resumption of the increase is expected within wave 3, c, with targets above 114 figures.
