Wave Analysis:
During yesterday’s trading session the USD/JPY pair did not mange to resume an uptrend and dropped 50 basis points from the level of 82.60. Thus, the pair continues its range move in the 81.80 – 82.80 area which is apparently wave structure of wave B in a more extended correction. If it is so, it seems likely that the pair will continue forming the next series of waves abc.
Targets for New Up Wave:
82.40 – 11.4% of Fibonacci
82.83 – the high of wave 5
Targets for Down Wave:
81.94 – 23.6% of Fibonacci
81.39 – 38.2% of Fibonacci
Summary and Trading Recommendations:
We can conclude that a complex side structure of the waves continues its formation. The descending move of the quotes may spread to the targets placed near the levels of 81.94 and 91.39 which is corresponding to 23.6% and 38.2% of Fibonacci. Rise of the quotes may start to the levels of 82.40 and 82.83 which is corresponding to 11.4% of Fibonacci and the high of wave 5. Neither channels nor Divergence/Convergence of MACD are observed at the moment. Wave C of the correctional trend may be rather extended and the entire side structure may be complex.
