Analysis of wave counting:
After working off the level of 112.85 in the second half of Friday trading, the USD/JPY pair still started the expected decline and, having lost almost 150 basis point at the end of the day fell to the level of 111.40. At the same time, it can be assumed that, after completing the first wave, in a, in c, in a, in (C), the currency pair has almost already formed the 2nd wave, in a, in c, in a, in (C) . If this is the case, then from the low of the last day of the past week, or slightly lower, the currency pair may resume the growth of quotations and mark the beginning of the third wave, in a, in c, in a, in (C).
Targets for a downward wave option:
111.01 - 50.0% by Fibonacci
110.15 - 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 the upward section of the trend. The assumed wave b, in a, in (C) has completed its construction near the mark of 111.01, which corresponds to 50.0% of Fibonacci. If this assumption is correct, then the increase in quotations will continue with targets above 115 figures, within the limits of wave c, in a, in (C).
