Analysis of wave counting:
The price rebound of the pair USD / JPY starting from the upper forming line of the rising channel, which started yesterday, provoked the drop of quotations yesterday by more than 90 percentage points, almost to the level of 108.90. At the same time, it can be assumed that the currency pair made another attempt after completion of the formation, taking the highly elongated form of the entire wave c, 4, C, C, (B). At the same time, the remaining undeveloped design goal in the area of the mark 110.25-110.30 allows the currency pair to resume the growth of quotations and further complicate the internal wave structure of the wave 5, c, 4, C, C, (B).
The objectives for the option with a downward wave:
108.10 - 38.2% of Fibonacci
106.77 - 23.6% of Fibonacci
The objectives for the option with an upward wave:
110.26 - 61.8% of Fibonacci
General conclusions and trading recommendations:
The tool continues to complicate the downward portion of the trend and wave counting has suffered some changes. The lowering of quotations may begin with the first targets near the marks of 108.10 and 106.77, which corresponds to 38.2% and 23.6% of Fibonacci, within the framework of the construction of wave 5, C, C, (B). Wave c, 4, can become even more complicated with targets located near the designated mark of 110.26, which corresponds to 61.8% of Fibonacci. An unsuccessful attempt to break through the level of 110.26 may lead to the completion of an upward wave. The upward corridor preserves the prospects for rising quotes.
