Simplified wave analysis and forecast of GBP/USD, USD/JPY, and EUR/JPY on January 8

GBP/USD

Analysis:

Over the past year, the quotes of the British pound have played up more than 22 price figures. Quotes came close to the lower border of a wide potential reversal zone of a large TF. The beginning of an incomplete wave of small scale leads the report from December 21. Since the end of last week, the price has been adjusted.

Forecast:

In the coming sessions, it is expected to complete the downward vector of price movement, form a reversal, and return to the upward movement rate. When changing the direction, a short-term puncture of the lower support border is not excluded.

Potential reversal zones

Resistance:

- 1.3670/1.3700

Support:

- 1.3550/1.3520

Recommendations:

There are no conditions in selling the pound on the pair's market today. In the area of settlement support, it is recommended to track signals for the purchase of the instrument.

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USD/JPY

Analysis:

The unfinished section of the dominant bearish trend of the Japanese yen begins on November 9. In its structure, a correction model has been formed in the form of an expanding triangle since the middle of last month. The movement is in its final phase and is nearing completion.

Forecast:

In the next day, price growth is expected, up to the full completion of the current bullish movement. By the end of the day, you can expect a change of course. The beginning of the decline is likely at the end of the day or the beginning of the next week.

Potential reversal zones

Resistance:

- 104.10/104.40

Support:

- 103.50/103.20

Recommendations:

Buying yen in the current environment is quite risky and is not recommended. The main attention should be paid to the search for sell signals in the area of the calculated resistance.

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EUR/JPY

Analysis:

The upward wave of the European cross, which began in the middle of last year, reached the lower limit of the preliminary target zone. Here, the chance of completing the entire wave increases many times. The wave structure now looks complete. There are no immediate reversal signals on the chart yet.

Forecast:

Today, in the first half of the day, an upward movement is most likely. By the end of the day, you can expect a transition to the side plane, with the formation of conditions for changing direction. Further, the beginning of a counter decline is expected.

Potential reversal zones

Resistance:

- 127.90/128.20

Support:

- 126.90/126.60

Recommendations:

Today, there are no conditions for sales in the pair's market. Purchases are most secure within the intraday framework. It is worth considering the limited potential of the upcoming recovery.

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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 instrument's movements in time!

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