Analysis of wave counting:

Having failed to execute the reversal, during the trades of the past week, the currency pair USD / JPY began with a downward movement, having lost about 330 percentage points in price and broke through the September low of last year, reaching the level of 105.55 at the same time. Thus, the current wave situation allows us to assume that the currency pair still significantly complicated the internal wave structure of wave B, (B). If this is so, then it seems that after November 6 last year (maximum 114.75), the currency pair is within the limits of the wave c, B, (B) and at the present time, it completes the formation of its internal 3rd wave, in which can lead to a price reversal in favor of the dollar, which in turn will mark the beginning of a fairly extended wave 4, c, B, (B).

The objectives for a downward wave option:

105.59 - 200.0% of Fibonacci

104.00

The objectives for the option with the construction of an upward wave:

108.42 - 127.2% of Fibonacci

110.00

General conclusions and trading recommendations:

The currency pair USD / JPY continues the construction of the supposed wave (C). Thus, the lowering of quotations may continue within the framework of wave 3, c, B, (B) with targets near the estimated level of 105.59, which is equivalent to 200.0% of Fibonacci, and lower, about 104 figures. The MACD convergence warns of the readiness of the tool to build an upward wave 4.