Analysis of wave counting:
The attempt to resume the downward movement made at the beginning of last week did not succeed, and after testing on Wednesday of the level of the 112th figure, the USD/JPY pair was able to add almost 160 basis points in price, completing Friday's session by reaching the level of 113.60. At the same time, it seems that as a result of this growth in quotes, the currency pair confirms the transition to the stage of formation of the first generating waves in the composition of the future wave c, in a, in (C). If this is the case, and there is a decrease to the level of 110.15, the currency pair will not further complicate the internal wave structure of wave b, in a, in (C), then it may have prospects for continuing the upward movement to levels 115 and beyond, up to the 118th figure.
Targets for a downward wave option:
11.01 - 50.0% by Fibonacci
110.14 - 61.8% by Fibonacci
Targets for an upward wave option:
115.43 - 61.8% by Fibonacci
116.32 - 76.4% by Fibonacci
General conclusions and trading recommendations:
The USD/JPY pair continues to build the upward wave (C). Thus, the increase in quotations may continue within the wave c, in a, (C) with targets located near the estimated levels of 115.43 and 116.32, which corresponds to 61.8% and 76.4% of Fibonacci (these targets will still be reviewed). The assumed wave b is complete.
