On the daily chart of the major Japanese currency pair, the main direction of the trend is set by the descending wave. Its last site, dated November 11 last year, has a pronounced impulse character.
Within the current wave, conditions for an upward correction were created in the last month. They have the established a standard plane formation. The preliminary calculation indicates the likely completion zone at the beginning of the 109th price pattern.
Today, a short-term downward pullback happened during the first half of the day but not beyond support lines has not yet been ruled out.
Boundaries of resistance zones:
- 107.10 / 40
Boundaries of support zones:
- 106.30 / 106.00
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.
