Simplified wave analysis and forecast for GBP/USD and USD/JPY on January 21

GBP/USD

Analysis:

The upward trend of the British pound led the quotes to the lower edge of the powerful resistance zone of a large TF. An incomplete wave of small scale on the main course counts down from December 21. In its structure, the final part (C) is formed.

Forecast:

Before the upcoming rise in the price today, it is necessary to adjust. The decline is likely no further than the estimated support. An upward mood can be expected by the end of the day or tomorrow.

Potential reversal zones

Resistance:

- 1.3730/1.3760

Support:

- 1.3630/1.3600

Recommendations:

Sales on the pound market today are possible only with a reduced lot. It is necessary to take into account the limited potential of the move down. It is recommended to pay main attention to tracking signals for the purchase of the instrument.

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USD/JPY

Analysis:

The dominant direction of the price movement of the Japanese yen is set by the algorithm of the downward wave of November 9 last year. The structure has completed the middle part (B). Since January 11, the final part (C) has started.

Forecast:

In the next day, a mostly downward rate is expected. In the European session, a short-term price increase is possible, not further than the calculated resistance. The support zone shows the lower limit of the expected daily movement of the pair.

Potential reversal zones

Resistance:

- 103.60/103.90

Support:

- 103.00/102.70

Recommendations:

There are no conditions for buying the yen today in the major market. It is recommended to track signals for selling the pair in the area of the calculated resistance.

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Explanation: In the simplified wave analysis (UVA), waves consist of 3 parts (A-B-C). The last incomplete wave is analyzed. The solid background of the arrows shows the formed structure, and the dotted line shows the expected movements.

Attention: The wave algorithm does not take into account the duration of the tool movements in time!

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

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