31.07.201709:36 Forex Analysis & Reviews: Wave analysis of the USD / JPY currency pair for July 31, 2017

Analysis of wave counting:

Starting the Friday's trading with a slowly developing downward movement, the pair USD / JPY still managed to break through the minimum reached on July 24 and work out the mark of 110.55 at the end of the day. Thus, it can be assumed that the currency pair confirmed the transition to the stage of formation of the 3rd wave, in the future C, E, (B), opening the way to the levels of 109th and even 108th figure. At the same time, under current conditions, the probability of a price rollback to the upper generating line of the inclined corridor remains, so that the 2nd wave, C, E, (B) will somewhat complicate its wave structure.

Targets for the downward wave option:

110.20 - 161.8% by Fibonacci

109.00 - 108.00

Targets for the upward wave option:

112.09 - 38.2% by Fibonacci

112.55 - 50.0% by Fibonacci

General conclusions and trading recommendations:

The instrument completed the construction of the wave E, C, (B). In the framework of the construction of wave 3, C, E, (B), the decline in quotations may continue with targets near the level of 110.20, which is equivalent to 161.8% Fibonacci, and lower, about 109 and 108 figures. An unsuccessful attempt to break through the level of 112.09 led to the completion of the correction wave 2.