Analysis of wave counting:

During the European session yesterday, the USD/JPY pair began with the expected downward movement and lose around 70 bp in price which stopped in the afternoon before the level of the 112th figure. At the same time, it can be assumed that the currency pair remained in the formative stage of the incomplete wave s in c, in b, and in (C). If this is the case, the initial stage of the MACD divergence indicates that the testing of 112.00 that may lead to rebound prices in favor of the dollar and a significant complication of the inner wave structure of the wave in a, in b, and in (C).

Targets for a downward wave option:

111.89 - 38.2% by Fibonacci

111.02 - 50.0% of Fibonacci

Goals for the option with an upward wave:

113.59 - 161.8% Fibonacci retracement

113.88 - 11.4% by Fibonacci

General conclusions and trading recommendations:

The tool continues to build the upward section of the trend. The increase in quotations may resume with the targets near the marks 113.59 and 113.88, which corresponds to 161.8% and 11.4% of Fibonacci, within the complex wave s, in c, in b, in (C). This wave can take a very long form. The MACD convergence indicates the willingness of the instrument to build an upward wave.