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Simplified wave analysis of GBP / JPY pair for the week of January 3

Large-scale graph:

Throughout the past year, the main vector of the short-term trend of the cross was a decline. By November, the first 2 parts of the wave (A-B) were fully formed on the graph.

ZycDX_GGUvdkX3XuV1gySVUhx4D6NvwQSX8lzJPc

Medium-scale graph:

From November 8, the price began to form a bearish plot. It completes a larger model tool.

OiiImPIvldjYqsHzSZ1MmGnCIgjD6rR4iqepXasT

Small-scale graph:

In the last wave of December 13, a long flat prepared the conditions for the final spurt down. In the coming days, you can expect to roll back up.

Forecast and recommendations:

The current downtrend shows the first signs of probable completion. In the coming weeks, the vector of price movement may change. However, while the turn signals are not observed and sales remain the main direction of trade transactions.

Resistance zones:

- 137.00 / 137.50

Support areas:

- 131.00 / 130.50

Explanations of the figures:

The simplified wave analysis uses 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 number of wave markings used by the author. While the dotted shows the formed movement.

Note: The wave algorithm doesn't take into account the duration of tool movements over time. To trade a trade transaction, you need to use signals!

The material has been provided by InstaForex Company - www.instaforex.com