Analysis of wave counting:
As the trading session on Wednesday started with a downward movement, the USD / JPY pair, however, failed to gain a foothold under the level of the 112th figure and rolled back to the 112.35 level until the end of the day. Thus, it can be assumed that the currency pair remained in the formation stage of the 3rd wave, a, c, a, c (C), to some extent complicating its internal 3rd wave. As mentioned earlier, the currency pair retains the potential for the resumption of decline in quotations to 114.15, with the prospect of further complicating the internal wave structure of wave b, in a, in (C).
Targets for the downward wave option:
111.01 - 50.0% of Fibonacci
110.15 - 61.8% of Fibonacci
Targets for the upward wave option:
115.00 - 117.00
General conclusions and trading recommendations:
The instrument continues to form 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 the 50.0% of Fibonacci. If this assumption is true, the increase in quotations will continue with the targets above 115 figures, near the limits of wave c, in a, in (C).* The presented market analysis is informative and does not constitute a guide to the transaction.
