Analysis of wave counting:
Having started the yesterday's trading with the upward movement, the currency pair USD / JPY was able to add about 80 percentage points in price and work out the mark of 109.80 at the end of the day. It can be assumed that the currency pair remained in the formative stage of the slightly more complicated form of the wave 2, 1, 5, C, C, (B). If this is so, then, while maintaining the potential for working out the target in the vicinity of 110.25 and further complicating the internal wave structure of the entire wave c, 4, C, C, (B), the currency pair may resume the decline quotations in the direction of the level of the 108th figure.
The objectives for the option with a downward wave:
108.10 - 38.2% of Fibonacci
106.77 - 23.6% of Fibonacci
The objectives for the option with an upward wave:
110.26 - 61.8% of Fibonacci
General conclusions and trading recommendations:
The tool continues to complicate the downward trend section. The lowering of quotations may resume with the first targets near the marks of 108.10 and 106.77, which corresponds to 38.2% and 23.6% of Fibonacci, within the framework of wave 5, C, C, (B). Wave c, 4, can become even more complicated with targets located near the calculated mark of 110.26, which corresponds to 61.8% of Fibonacci. An unsuccessful attempt to break through the level of 110.26 may lead to the completion of an upward wave. The upward corridor still retains the prospect of higher quotes.
The material has been provided by InstaForex Company - www.instaforex.com