Analysis of wave counting:
In general, as expected, yesterday's USD/JPY trades started from the upward movement, although after breaking through the level of 113.40 the pair retreated by more than 40 bp. from the lows reached in the middle of the day. Thus, it seems that the currency pair remained in the stage of formation of the second wave, in c, in (C), in which its internal wave with still retained a not completely completed form. If this is the case, then before specifying the beginning of the 3rd wave, in c, in (C), the currency pair may return to the lows of the previous day, or even continue the decline to the level of the 113th 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 wave (C) is being constructed, and the construction of its internal wave c, in 2, in c, with targets located near the estimated marks of 113.04 and 112.71, which corresponds to 50.0% and 61.8% Fibonacci. After the completion of this wave, it is expected to resume the increase in quotes within wave 3 in c, in (C) above 115 figures.
