Analysis of wave counting:
As expected, last week's USD / JPY pair started with a descending movement, having lost more than 220 percentage points in price and stopped before the level of the 108th figure on Friday. The current wave situation allows us to assume that the currency pair has complicated the wave c, b, a, (C) that took the form of the five-wave structure. If this is the case, then the MACD located in the positive area indicates the possibility of a currency pair reversal in favor of the dollar from the already reached minimum and its transition to the stage of formation of the first generating waves in the future wave c, a, (C).
The objectives for a downward wave option:
108.15 - 88.6% of Fibonacci
107.00
The objectives for the option with the construction of an upward wave:
115.43 - 61.8% of Fibonacci
116.32 - 76.4% of Fibonacci
General conclusions and trading recommendations:
The pair USD / JPY continues the construction of the supposed wave (C). Thus, the increase in quotations may begin within the limits of wave c, a, (C) with targets located near the calculated marks of 115.43 and 116.32, which corresponds to 61.8% and 76.4% of Fibonacci (these goals will be reviewed). The assumed wave b, a, (C) can further complicate its internal wave structure, with targets below the mark of 108.15, which equates to 88.6% of Fibonacci.
