Wave Analysis:
After the Bank of Japan has extended its asset purchasing program by 10 trillion yen, yesterday’s trading session for the USD/JPY passed rather volatile. At the same time, the test of level of 79 figure with the price coming closer to 79.20 led to rebound in price near 100 points. Meanwhile, despite the drop, it seems like the pair may resume formation of upward correctional structure. It is estimated that it may begin from the yesterday’s low or the level of 77.90.
Targets for Down Wave b:
78.16 – 50.0% of Fibonacci
77.92 – 61.8% of Fibonacci
Targets for Wave of Uptrend:
78.41 – 38.2% of Fibonacci
78.71 – 23.6% of Fibonacci
78.96 – 11.4% of Fibonacci
Summary and Trading Recommendations:
At the moment, the wave is forming the ascending correctional trend which is rather complicated and mixed. The upward move to the levels of 78.41, 78.71, and 78.96 may continue, corresponding to 38.2%, 23.6%, and 11.45 of Fibonacci in terms of wave 3 or c. Before the building of the wave the correctional wave b with targets of 78.16 and 77.92, corresponding to 50.0% and 61.8% of Fibonacci may continue.
