Wave Analysis:
During yesterday’s trading session, the USD/JPY pair was moving in a narrow price range of 20 points. It is most likely that the pair started and inner wave 4 structure (into c) which is now much longer and more complicated. If it is so, the price will probably go down to 78 figure in the terms of the future wave 5 (into c).
Targets for Down Wave (5 in c):
78.00 and lower – 61,8% Fibonacci
Targets for Up Wave (of new or correctional trend area):
78.83 – 50.0% Fibonacci
78.96 – 61.8% Fibonacci
Summary and Trading Recommendations:
At the moment the descending trend is forming but any lull at the market may result in different corrections. The fall towards 78.00 level is also possible which is equal to 61.8% of Fibonacci in terms of wave 5 in c. After this wave is finished, the quotes may grow towards 78.83 and 78.96 which correspond to 50.0% and 61.8% of Fibonacci in the terms of the first wave. No MACD channels pr divergences are formed.