Wave analysis:
Yesterday during the Pacific trading session the USD/JPY pair failed to break down the level of the figure 77. As a result by the end of the day the price has dropped to 76.70. Despite the decrease the pair is still able to develop the wave structure of an uprising 3rd wave (or wave C). At the same time it is necessary to keep in mind that despite the positive MACD the European crisis (or in case it is lessened) can make unexpected corrections in the present wave situation.
Targets for the variant with wave 2 or B (supposedly completed).
76.60 – lower limit of the sideways channel
General conclusions and trading recommendations:
The current movement may change to a 5-wave formation of a supposedly new ascending part of a trend. During the previous trading day the wave picture has hardly changed. If this suggestion is true, it is possible to see an increase of the 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 rising to the upper limit of the sideways channel. The convergence of MACD entirely supports the variant with the development of ascending movement.
