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Simplified wave analysis and forecast for USD/JPY on May 9

The last wave of the yen major is rising, started on March 25th. It completes a more massive bullish wave model. The wave is nearing completion of the middle part of the structure (B). The price is approaching the upper limit of the wide area of a potential reversal of the scale of at least W1, but there are no signals of the rate change on the chart yet.

Forecast:

In the first half of the day, a downward vector of movement is expected today. Towards the end of the day, in the area of settlement support, a turn and the beginning of a counter upward movement are likely. A breakthrough of the lower limit of support when changing course is not excluded! The potential of the upcoming price growth is estimated at least in 3 figures.

Recommendations:

Selling a pair today is worth only in short-term transactions for a few points. After the appearance of reversal signals on your vehicle, it is recommended to pay attention to the purchase of the pair.

Resistance zones:

- 110.60 / 110.90

Support zones:

- 109.80 / 109.50

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Explanations to the figures: Waves in the simplified wave analysis consist of 3 parts (A – B – C). The last unfinished wave is analyzed. Zones show areas with the highest probability of reversal. The arrows indicate the wave marking according to the method used by the author, the solid background is the formed structure, the dotted ones are the expected movements.

Note: The wave algorithm does not take into account the duration of tool movements over time.

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