08.05.201810:20 Forex Analysis & Reviews: Wave analysis of the USD / JPY currency pair for May 8, 2018

Analysis of wave counting:

As expected, during the yesterday's trading, the currency pair USD / JPY continued to develop an upward correction from the peak reached on Friday and was able to work out the mark of 109.40 in the middle of the day. Thus, the emerging wave situation allows us to assume that the currency pair remained in the stage of formation of the first generating waves in the composition of the future wave 1, 5, C, C, (B). At the same time, the currency pair has so far retained the potential for resuming the growth of quotations at least to the level of 110.25 and further complicating the internal wave structure of the entire wave c, 4, C, C, (B).

The objectives for the option with a downward wave:

108.10 - 38.2% of Fibonacci

106.77 - 23.6% of Fibonacci

The objectives for the option with an upward wave:

110.26 - 61.8% of Fibonacci

General conclusions and trading recommendations:

The tool continues to complicate the downward trend section. The decrease of quotations may continue with the first targets near the marks 108.10 and 106.77, which corresponds to 38.2% and 23.6% of Fibonacci, within the framework of the construction of wave 5, C, C, (B). Wave c, 4, can become even more complicated with targets located near the calculated mark of 110.26, which corresponds to 61.8% of Fibonacci. An unsuccessful attempt to break through the level of 110.26 may lead to the completion of an upward wave. The upward corridor still retains the prospect of higher quotes.