FX.co ★ Wave analysis of the USD/JPY currency pair for February 05, 2010

The USD/JPY pair fully confirmed its status as neither the first nor the second major currency yesterday. Amid the developing correction at the stock markets, the traders reduce their positions, transforming assets into “ready cash”. So we can explain the demand for the US dollar as well as for the Yen by this fact. Anyway, but yesterday\'s soaring of the Japanese currency removed the set stop – losses by us near 89.90 and complicated the total wave picture. More likely, 2 – week sideway trend between January,19 and February, 03 should be determined as the correctional – within the frames of the probable B wave of the total ABC correction. If so, then the target of C wave will be the levels presented at the figure.

Analyst: Alexander Dneprovskiy.