Wave marking analysis:
Yesterday the USD/JPY pair was trading in a very narrow range of 30 basis points. Considering the wave structure formed by the end of yesterday’s trades, the currency pair has almost equal possibilities either to complete the ascending movement or to resume the downside mood that will in turn lead to the complication of the wave structure of the whole descending part of the trend that began on 3rd April. At the same time the MACD divergence is considered as favorable for the prospect development of the trend for the dollar’s benefit.

Targets for the continuation and complication of the downside correction or its transformation into descending impulse movement:
80.64 – 127.2% according to Fibonacci

Targets for the resumption of the ascending impulse movement:
82.33 – 50.0% according to Fibonacci
82.74 – 38.2% according to Fibonacci

General conclusions and trading recommendations:
At the moment the opportunity to form the global uprising part of the trend with target seen near the level of figure 85 is still relevant. Presently we can see the descending movement within the wave 4 of the global uprising trend. The current correction within the wave 4 has downside targets 80.64 which are equal to 127.2% of Fibonacci. Every day this correction is getting more and more complicated and therefore reducing the chances for resumption of the uprising part of the trend. The complication of the wave structure and recent multidirectional movements are not considered as favorable conditions on this pair. If quotes decline below the 80.50 level, the whole current wave structure will be reviewed.