Analysis of wave counting:
A significant weakening of the dollar in the second half of yesterday's trading allowed the USD/JPY pair to resume the downward movement and at the end of the day reached the mark of 106.15. It can be assumed that, despite this decline, the currency pair remained in the stage of formation, which considerably complicated its wave structure of the second wave, in a, in the 4th, in C, in C, in (B). If this is the case, then practically from the lows of the past day, or after the breakdown of the level of the 106th figure, the currency pair will resume the growth of quotations and yet signify the beginning of the future 3rd wave, in a, in the 4th, in C, in C, in (B). At the same time, the currency pair retained the potential for the development of the downward movement to the level of 104.00, as well as the transformation of the entire 3rd wave, in C, in C, in (B) into an even more complex wave structure.
Targets for a downward wave option:
106.07 - 423.6% by Fibonacci
105.22 - 523.6% by Fibonacci
Targets for an upward wave option:
107.25 - 108.00
General conclusions and trading recommendations:
The trading instrument continues to build a long-term uptrend. The decline in quotations may continue with the targets on the way to the level of 106.07, which corresponds to 423.6% of Fibonacci, within the framework of the construction of wave 2, in a, in 4, in C, in C, in (B). After the completion of this wave, the quotes may rise again within the framework of the impulse wave 3 with goals that are significantly higher than the 108 figure. Convergence MACD_aka warns about the readiness of the trading instrument to increase.
