Analysis of wave counting:

During yesterday's trading, the USD/JPY pair continued the development of the upward movement, which started on Friday. And, having added more than 120 bp in price, it managed to work out the mark of 110.85. In this case, the internal wave structure of the supposed 4th wave, in the 1st, in C, in E, in (B), has almost finished. If this is so, then from the maximum already reached yesterday, the currency pair may resume the decline of quotations and thereby indicate the beginning of the 5th wave, in the 1st, in C, in E, in (B).

Objectives for a downward wave option:

108.30 - 100.0% by Fibonacci

Objectives for an upward wave option:

110.86 - 61.8% by Fibonacci

111.36 - 76.4% by Fibonacci

General conclusions and trade recommendations:

The trading instrument continues to build the C wave, in E, in (B). In the framework of the construction of wave 5, in 1, in C, in E, in (B), the reduction of quotations may resume with targets near the estimated level of 108.30, which is equivalent to 100.0% of Fibonacci. At the moment, the correction wave 4 is being constructed, in 1 with the targets near the regions 110.86 and 111.36, which corresponds to 61.8% and 76.4% Fibonacci. An unsuccessful attempt to break through the level of 110.86 may lead to the completion of wave 4.