The current wave model is upward, counting from March 25. In the larger-scale wave, this section began the final part (C). Since April 12, a bearish correction has developed in the wave, which received an additional lengthening yesterday. The structure of the wave looks complete, but the signals of the emergency change of the pair's course are not observed on the chart.
Forecast:
Today, we can count on the continuation of the current decline, until its completion. A strong boundary is the level of the weekly TF, passing through the support zone. By the end of the day, the probability of changing the vector of movement in this area and the beginning of the price rise increases.
Recommendations:
When selling yen, it is better to reduce the lot size used. In the support area, at the first signs of a reversal, it is recommended to complete short trades and start tracking the pair's buy signals.
Resistance zones:
- 110.70 / 111.00
Support zones:
- 109.80 / 109.50
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