Analysis of wave counting:
At the beginning of yesterday's trading, the USD/JPY pair resumed the upward movement and, having added more than 60 basis point in price, reached 107.40 in the afternoon. Thus, with some stretch, we can assume that the currency pair remained in the stage of formation of the 1st wave, in the 5th, in the 5th, in the 3rd, in C, in C, in (B), considerably complicating with this is its inner 2nd wave. If this is the case, then from the high of the past day, the currency pair will nevertheless begin the expected decline in quotations, with the prospect of testing the level of the 106th figure.
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 lowering of quotations may resume with the targets of about 105 and 104 figures, within the framework of the construction of wave 5, at 5, at 3, in C, in C, in (B), since wave 4 assumed a very complicated form, completed its construction around the estimated mark of 107.42, which corresponds to 38.2% of Fibonacci. Further increase in quotations will lead to the need to refine the wave counting.
