FX.co ★ Wave analysis of the USD/JPY currency pair for December 18, 2017

Analysis of wave counting:

Another attempt to test the level of the 112th figure ended with another setback and at the beginning of Friday's European session, the USD/JPY pair began a retreat from the reached lows, having managed to add about 70 basis points in price. At the same time, despite significant growth in quotations, wave b, in c, in a, in (C), retained elements of some incompleteness, which could allow the currency pair to resume the downward movement to the level of 111.50. At the same time, the currency pair has prospects for further development of the already identified upward movement and its transition to the stage of formation of the future wave c, in c, in a, in (C).

Targets for a downward wave option:

111.89 - 38.2% by Fibonacci

111.02 - 50.0% of Fibonacci

Targets for an upward wave option:

113.43 - 100.0% of Fibonacci

113.98 - 127.2% by Fibonacci

General conclusions and trading recommendations:

The trading instrument continues to build the uptrend section of the trend. The increase in quotes may resume after the completion of the current corrective wave with targets near the marks 113.43 and 113.98, which corresponds to 100.0% and 127.2% of Fibonacci, within the wave c, in c, in a, in (C). An unsuccessful attempt to break the 111.89 mark may lead to the completion of the downward wave b.