Analysis of wave counting:
As expected, the last day of the previous week the USD/JPY pair started with a downward movement and, losing more than 60 basis point in price, at the end of the day it was fixed below the level of 107th figure. It can be assumed that after completing the 4th wave the currency pair made an attempt to go to the stage of formation of the first generating waves in the composition of the future 5th wave, in the 5th, in the 3rd, in C, in C, in (B). If this is the case, the currency pair may have good prospects for lowering the quotations to the level of 104.00.
Targets for a downward wave option:
105.00 - 104.00
Targets for an upward wave option:
107.42 - 38.2% by Fibonacci
108.00
General conclusions and trading recommendations:
The trading instrument continues to complicate the downward trend section. The decline of quotations may resume with the targets of about 105 and 104 figures, within the framework of the construction of wave 5, in 5, in 3, in C, in C, in (B), after the completion of the correctional wave 4, which took a very complex form and can become more complicated with targets near the 107.50 and 108 figures.
