Analysis of wave counting:

Despite the fact that at the beginning of yesterday's European session it was possible to update the lows reached yesterday, the USD/JPY pair held in the range during the whole day, trading around the level of the 107th figure. Thus, the emerging wave situation makes it possible to assume that the currency pair remained in the stage of formation of the first generating waves in the composition of the future 1st wave, in the 5th, in C, in C, in (B). If this is the case, then in the process of development of the internal wave structure of the 1st wave, in this 1st, 5th, in C, in C, in (B), the currency pair can resume the decline of quotations in the direction of 106.50.

Targets for a downward wave option:

105.00 - 104.00

Targets for an upward wave option:

107.55 - 50.0% by Fibonacci

108.24 - 61.8% by Fibonacci

General conclusions and trading recommendations:

As the trading instrument continues to complicate the downward section of the trend, wave counting has observed some changes. The decline of quotations may resume with targets, which are about 105 and 104 figures, within the framework of the construction of wave 5, in B, in C, in (B). Wave 4 took a very complicated look and could complete its construction around the estimated mark of 107.55, which corresponds to 50.0% of Fibonacci.