Since the end of 2016, the trend direction of the Japanese yen major pair on the daily scale chart is set by a bearish wave. In a larger model, this wave corrects the upward movement of the pair. By now, its structure has fully formed and all parts of the wave have reached the correct proportions. the price reached the upper limit of the potential reversal zone in the middle of last month. The probable completion of the preliminary level of the entire current bearish construction in its framework.
Today, the pair is expected to have a common flat tone. In the first half of the day, a downward pullback is likely but not beyond the boundaries of the support zone. By the end of the day, the chance of a change in direction increases with the beginning of a price rise increase.
Boundaries of resistance zones:
- 106.40 / 70
Boundaries of support zones:
- 105.80 / 50
Explanations of the figures:
For simplified wave analysis, a simple waveform is used that combines 3 parts namely A, B, and C. All types of correction are created and most of the impulses can be found in these waves. Every time frame is considered and the last incomplete wave is analyzed.
The areas marked on the graphs indicate the probability of a change in the direction of motion has significantly increased as calculated in the areas. Arrows indicate the wave counting following the technique used by the author. A solid background of the arrows signifying the structure has been formed while the dotted one means the expected wave motion.
Attention: The wave algorithm does not take into account the duration of the movement of tools in time. The forecast is not a trading signal! To conduct a bargain, you need to confirm the signals used by your trading systems.
