Wave marking analysis:
Yesterday the USD/JPY tried to develop the ascending movement that began on Friday transforming it to the new and more prolonged corrective structure. The first possible targets are seen near 78.60 – 78.90 corresponding to the correction levels of 23.6% and 38.2% for the whole supposed wave 3. If that proves to be so, then after the completion of these levels, the pair will resume its movement towards the target level located near 76.50.
Targets for the continuation of the downward trend within the wave 3 or C in C:
77.67 – 161.8% of Fibonacci
Targets for the option with the wave 4 in C or formation of new upward part of the trend:
78.24 – 23.6% of Fibonacci
78.61 – 38.2% of Fibonacci
General conclusions and trading recommendations:
At the moment the descending part of the trend is being forming supposedly within the wave 4 in C. If this suggestion is true, then the wave C has quite complicated inner structure that is likely to complicate several times. In general the pair is likely to continue its growth towards 78.24 and 78.61 which is equal to 23.6% and 38.2% of Fibonacci. The situation with this pair is rather controversial than clear and the wave picture needs clarifications.
Performed by Александр Днепровский, Analytical expertInstaForex Companies Group © 2007-2011