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 confidently gain a foothold above the level of the 110th figure at the end of the day. The resulting wave pattern suggests that the currency pair significantly complicated the wave 4, C, C, (B), in which its internal wave a took the form of a five-wave structure. If this is so, then before the completion of this wave a, 4, C, C, (B), the currency pair can work out a mark of 110.85 or even a level of 111.00.
The objectives for the option with purchases:
111.85 - 76.4% of Fibonacci
The objectives for the option with sales:
109.18 - 50.0% of Fibonacci
108.10 - 38.2% of Fibonacci
General conclusions and trading recommendations:
The upward wave 4, C, C, (B) complicated its internal wave structure, which led to the refinement of the whole wave marking. Thus, I recommend buying a pair with targets near the estimated level of 111.85, which is equivalent to 76.4% of Fibonacci. I recommend to go back to sales after the completion of wave 4, which may more than once become more complicated, since the dollar is now in high demand.
The material has been provided by InstaForex Company - www.instaforex.com