Wave pattern on the H4 chart:
On the chart of the Japanese yen major pair, a downward wave has been developing since July. It shows a wrong appearance, forming a correction trend of a larger scale.
Wave pattern on the H1 chart:
The downward zigzag that began on October 4 completes the wave of the higher H4 timeframe. The structure formed the first 2 parts (AB).
Wave pattern on the M15 chart:
The wave of November 12 is moving down. It is expected to be completed in the area of support consolidation.
Recommended trading strategy:
Sales can be recommended for intraday trading. Investment supporters are advised to refrain from transactions until the current downward wave is completed.
Resistance zones:
- 114.20 / 114.70
Support areas:
- 111.70 / 111.20
Explanations of the figures:
The simplified wave analysis uses waves consisting of 3 parts (A – B – C). For the analysis, three main TFs are used. On every last part, the incomplete wave is analyzed. Zones show calculated areas with the highest probability of reversal.
The arrows indicate the wave marking by the method used by the author. The solid background shows the formed structure while the dotted shows the expected movement.
Note: The wave algorithm does not take into account the duration of tool movements over time. To conduct a trade transaction, you need confirmation signals from the trading systems you use!
The material has been provided by InstaForex Company - www.instaforex.com