Analysis of wave counting:
Testing at the beginning of yesterday's European session of the level of the 110th figure provoked a rebound in the price of the USD/JPY pair by 70 basis points, to the level of 109.30. The resulting wave situation suggests that, despite the return of quotations to the May 2 highs, the currency pair remained in the stage of formation of the first generating waves in the composition of the future 1st wave, in the 5th, in C, in C, in (B ). At the same time, the currency pair still retains the potential to continue the upward movement, at least to the level of 110.25, and even more complication of the internal wave structure of the entire wave c, in the 4th, in C, in C, in (B).
Targets for buying:
111.50 - 76.4% by Fibonacci
Targets for selling:
108.10 - 38.2% by Fibonacci
106.77 - 23.6% by Fibonacci
General conclusions and trading recommendations:
The upward wave 4, in C, in C, in (B), is supposed to be completed, like the supposed wave 2, at 1, at 5, at C, at C, at (B). Thus, it is recommended to sell the pair with targets near the estimated level of 108.10, which is equivalent to 38.2% of Fibonacci. Buying the pair is recommended after a successful attempt to break through the mark of 110.26, as this will mean an even more complicated wave 4, in C, in C, in (B).