Analysis of wave counting:
As expected, at the beginning of yesterday's Asian session, the pair USD/JPY generally continued the development of the downward movement and, having lost almost 100 bp, managed to reach the mark 113.10 by the close of the American session. Thus, it can be assumed that the currency pair remained in the stage of formation of the 2nd wave, in c, in (C), in which its internal wave with is nearing its completion. If this is the case, then from the low of the past day, or after the price falls to 112.70, the currency pair can resume the growth of quotes and thereby indicate the beginning of the third wave, in c, in (C), which is also indicated by those included in the oversold area indicators.
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, at 2, in c, with targets located near the estimated marks 113.04 and 112.71, which corresponds to 50.0% and 61.8% Fibonacci. After the completion of this wave is expected to resume the increase in quotations within wave 3 in c, in (C) above 115 figures. An unsuccessful attempt to break the mark 113.04 may lead to the completion of the entire wave 2.
