Large TF:
A bullish wave has been developing on the weekly scale of the Japanese yen chart since March last year, the structure of which completed the first 2 parts.
Small TF:
The ascending segment, which began on January 3, gave rise to the final part in a larger wave structure. The wave develops in pulse type, with minimal recoils. Before further rise, the price is to complete a rollback down.
Forecast and recommendations:
The scope of the previous price growth is estimated at least 3 price patterns. Next week, an "outset" is expected. For bull traders, the upcoming price rollback will provide a good opportunity to strengthen their purchases or enter the market on the most favorable terms.
Resistance zones:
- 110.90 / 108.80
Support areas:
- 109.80 / 109.30
Explanatory notes for the figures: The simplified wave analysis uses waves consisting of 3 parts (A – B – C). On each of the considered scales of the graph, the last, incomplete wave is analyzed. 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.
Note: 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