Analysis of wave counting:
During the yesterday's trading, the decision of the Bank of Japan to reduce the repurchase of bonds led to strengthening the yen by 150 pp and a fall in the price of the pair USD / JPY almost to the level of 111.25. In this case, the internal wave structure of the wave e, c, b, (C) assumed a completely completed, though somewhat elongated, view. If this is so, then practically from the minimum of the past day, the currency pair may resume the growth of quotations and thereby indicate the beginning of the future wave c, (C). At the same time, it should be noted that the fall in price under the level of the 111th figure will provoke, most likely, the need to revise the already established wave counting of the entire wave a, (C).
Targets for the downward wave option:
111.02 - 50.0% of Fibonacci
Targets for the upward wave option:
113.59 - 161.8% of Fibonacci
113.88 - 11.4% of Fibonacci
General conclusions and trading recommendations:
The tool continues to build the uptrend section of the trend. The increase in quotations may resume with targets near the mark of 113.59 and 113.88, which corresponds to 161.8% and 11.4% of Fibonacci, within the wave c, (C). This wave can take a very long form. At the same time, the quotes are now continuing to decline within the complex wave b, (C) with targets near the 111.89 mark, which corresponds to 38.2% of Fibonacci.
