Simplified wave analysis and forecast for EUR/USD and GBP/JPY on January 22

EUR/USD

Analysis:

The unfinished section of the upward trend has been counting down since November 4 last year. In the last month and a half, the price forms a correction in the form of a stretched plane. Since January 18, a section of the chart that does not have a reversal potential and does not go beyond the rollback of the last part of the bearish wave has been developing upwards.

Forecast:

Over the next day, the general mood of the movement is likely. The pair's upward trend is expected to end, then reverse and re-decline to the support area. When the exchange rate changes, a sharp increase in volatility is not excluded.

Potential reversal zones

Resistance:

- 1.2210/1.2240

Support:

- 1.2140/1.2110

Recommendations:

Today, trading the euro is possible within the intraday. The potential for purchases is limited by the calculated resistance. Sales from the resistance zone look more promising.

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GBP/JPY

Analysis:

The upward wave of the pair, which began in March last year, is approaching the lower border of the wide zone of a potential reversal of a large TF. Until the end of the entire current wave, you can not count on long downward movements.

Forecast:

Today, in the first half of the day, a flat mood of movement in the side plane is more likely. A short-term decline is not excluded, not further than the support zone. Activation and an attempt to break through the nearest resistance is likely at the end of the day or the beginning of next week.

Potential reversal zones

Resistance:

- 143.50/143.80

- 142.20/142.50

Support:

- 141.50/135.60

Recommendations:

Selling the pair today can be risky and is not recommended. The main attention should be paid to the search for signals for the purchase of the instrument.

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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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