Large-scale graphics:
In the uptrend trend of the major Japanese yen since July, the counter-corrective wave has developed. It has the form of a moving plane, which has every chance of becoming stretched over time.
Medium scale graphics:
The downward wave of October 3 completes the correctional model of a larger TF. The structure began working out the final phase (C).
Small-scale graphics:
From December 13, the impulse motion started down, completing the larger wave construction. In the coming days, a short-term pullback is not excluded, after which the price move down will continue.
Forecast and recommendations:
The current price reduction goes against the main trend direction, so sales carry an increased degree of risk. It is recommended to wait for the completion of the wave. Further purchases will be relevant couples.
Resistance zones:
- 111.80 / 112.30
Support areas:
- 109.50 / 109.00
Explanations for the figures: The simplified wave analysis uses waves consisting of 3 parts (A – B – C). The analysis uses 3 consecutive scale graph. Each of them 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, the dotted - the expected movement.
Attention: 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