Wave market analysis:
During the past day USD/JPY pair continued its growth and in the course of the European session tested 79.75 level. Meanwhile, it seems that the upward movement, which takes its development from the low of June 1 (77.65), looks more like an incomplete 5-wave structure with prolongation in its third wave or c. If it is so, then, starting from the yesterday’s high, this pair will start forming a downward correction towards the 79.00 level.

Targets for the option with the continuation of the downward trend within the wave 5 in C:
77.67 – 161.8% of Fibonacci

Targets for the option with the wave 4 in C or beginning of the ascending part of the trend:
79.86 – 88.6% of Fibonacci

General conclusions and trading recommendations:
At the moment the new downward part of the trend is continuing its formation, supposedly within the wave 4 in C. If that proves to be so, then the wave C has a quite complicated wave structure that can get even more complicated. Also such movement can be regarded as the first waves of the new upward part of the trend. In general, in coming days the pair is likely to reach 79.86 which is equal to 88.6% of Fibonacci. The situation with this pair is rather controversial than clear and requires clarifications. The fourth wave is very strong but the resumption of the downside trend and the fifth wave formation is still possible.