Wave marking analysis:
In accord with the forecasts, when in the course of Friday’s trading session the formation of the inner wave structure of a prospect wave С in B (or in the 2nd) was completed, the USD/JPY pair made an attempt to begin a new upward part of a trend. The new maximum near the figure 77 can become the top of its 1st wave. If that is true, then regarding the ratio of the 1st (or A) and the 2nd (or B) wave of the whole wave structure formed after January 4, we can suggest that the nearest targets of this ascending part are located near 77.40. In any case the position of MACD is not in contradiction with this probable increase of the currency pair quotes.
The targets for the variant with wave 2 or B (supposedly completed):
76.60 – lower limit of the sideways channel
Targets for the variant with wave 3 or C:
77,39 – 50,0% according to Fibonacci
77,59 – 38,2% according to Fibonacci
General conclusions and trading recommendations:
The current movement can become a 5-wave formation of a supposed new ascending part of a trend. During the previous trading day the wave picture has hardly changed. If this suggestion proves to be true, it is possible to see an increase of a currency pair to 77.39 responding to 50.0% of Fibonacci and 77.59 which is equal to 38.2% of Fibonacci within the wave 3 or from ascending part of a trend. The pair did not manage to remain lower than 76.55 that is why the main direction of the movement remains ascending to the upper limit of the sideways channel. The convergence of MACD entirely supports the variant with the development of a climbing movement.
