Analysis of wave counting:
As expected, at the beginning of yesterday's European session, the USD/JPY pair began a fairly dynamic upward movement and, adding in price almost 80 bp, in the second half of the day, reached the mark of 113.70. The resulting wave situation allows the assumption that, after completing the 2nd wave, the currency pair made an attempt to go into the stage of formation of the third wave, in c, in (C). If this is the case, the 2nd wave, in c, in (C) does not yet further complicate its wave structure, the currency pair can continue the marked increase of quotations in the direction of the level of 115th, or even 116th figure.
Targets for a downward wave option:
113.04 - 50.0% by Fibonacci
112.71 - 61.8% by Fibonacci
Targets for an upward wave option:
115.00 - 117.00
General conclusions and trading recommendations:
The trading instrument continues to build an upward set of waves. Now the construction of the wave (C) is continuing, and the construction of its internal wave 3, in c, with targets located above the 115 figure. The correction wave 2, in c, in (C) supposedly completed its construction. Unsuccessful attempt to break the mark 113.04 led to the retreat of prices from the lows reached.
