FX.co ★ Wave analysis of the USD/JPY currency pair for November 7, 2017

Analysis of wave counting:

Breakdown at the beginning of yesterday's trading of the highs reached on October 27 (114.45) led to a reversal and the subsequent rebound of the price of the USD/JPY pair by 100 bp from the level of 114.70. Thus, it can be assumed that the currency pair remained in the stage of formation, significantly complicating its wave structure of the 2nd wave, in c, in (C). If this is the case, yesterday's downward movement can be further developed in the direction of the targets for wave c, in the second, in c, in (C), located in the range between the levels of 113.35 - 112.70.

Targets for a downward wave option:

113.04 - 50.0% by Fibonacci

112.71 - 61.8% by Fibonacci

Targets for an upward wave option:

115.00 - 117.00

General conclusions and trading recommendations:

The trading instrument continues to build an upward set of waves. Now the wave (C) is being constructed, and the construction of its internal wave c, at 2, in c, with targets located near the estimated marks 113.04 and 112.71, which corresponds to 50.0 and 61.8% Fibonacci. The MACD_aka divergence also shows inclination towards a decline. After the completion of this wave is expected to resume the increase in quotes.