Large TF:
On the chart of the major Japanese yen since March, the rising wave algorithm is formed. By the end of the year, the first 2 parts (A + B) were fully completed.
Small TF:
The bull wave of January 3 completes the larger wave model. The wave develops in pulse type, with minimal recoils. Last week, the price adjusted for the last part of the trend. Achieved settlement zone is reached.
Forecast and recommendations:
In the coming days, the completion of the flat mood of the movement is expected and the beginning of an active price increase. A brief puncture below the support area is possible but unlikely. It is recommended to pay attention to the instrument purchase signals.
Resistance zones:
- 113.30 / 113.80
Support areas:
- 111.20 / 110.70
Explanations for the figures: The simplified wave analysis uses waves consisting of 3 parts (A – B – C). On each of the considered scales of the graph, the last, 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, the dotted - 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