Simplified wave analysis and forecast of GBP/USD and USD/JPY for January 25

GBP/USD

Analysis:

As a result of the upward trend, the quotes of the British pound reached the lower limit of the strong zone of a potential reversal. The length of the zone is more than 4 price figures, so the change in the short-term trend will be stretched over time. The incomplete short-term wave starts on December 21. It lacks the final part (C).

Forecast:

In the coming day, the general flat vector of the pair's movement is expected. After an attempt to put pressure on the resistance zone, you can then count on a change of course and a repeated decline to the support zone.

Potential reversal zones

Resistance:

- 1.3730/1.3760

Support:

- 1.3630/1.3600

Recommendations:

Trading on the pound market today is only possible in individual sessions with a reduced lot, according to the expected sequence.

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USD/JPY

Analysis:

The downward wave from November 9 sets the main direction of short-term movements of the Japanese yen. The unfinished section from January 11 forms a reversal pattern before the start of the final decline.

Forecast:

In the next trading sessions, the completion of the current price rise in the last two days is expected. By the end of the day, you can expect the formation of a reversal and the beginning of the price move down. The calculated zones show the expected daily range of the pair's movement.

Potential reversal zones

Resistance:

- 104.00/104.30

Support:

- 103.40/103.10

Recommendations:

Buying the yen today can be risky and is not recommended. The main attention is proposed to be paid to the search for signals for the sale 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 one 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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