Large-scale graph:
On a large scale graph of the yen, a rising wave model is being formed. Starting in March last year, the first 2 parts (AB) were formed so far.
Medium-scale graph:
Starting December 13, the impulse bearish wave completes the larger downward construction. The structure looks complete.
Small scale graph:
Since January 3, there is a bullish movement on the chart, which has a strong reversal potential. It is at the level of M30 but in the near future, the scale of the movement will move to a larger TF.
Forecast and recommendations:
The current upward price movement of the pair will only increase over time. Kickbacks are expected in the form of a short-term flat. It is recommended to look for long entry signals.
Resistance zones:
- 111.00 / 111.50
Support areas:
- 109.00 / 108.50
Explanations of the figures:
The simplified wave analysis uses waves consisting of 3 parts (A – B – C). Three consecutive graphs are used for analysis. Each of these analyzes the last incomplete wave. 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 and the dotted exhibits 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