FX.co ★ Simplified wave analysis of EUR / JPY for January 18

Large-scale graphics:

The bear wave that set the main direction of the price movement over the past year has a high chance of completing at current levels. Its structure looks completely complete, and the pair quotes are at the upper limit of strong support.

Medium scale graphics:

The downward wave of September 21 completes the downward wave model of a larger scale.

Small-scale graphics:

From January 3, the ascending segment with a reversal potential is formed on the graph. Over time, it will become the basis for a new short-term trend. The middle part (B) is formed in the wave structure.

Forecast and recommendations:

In the coming weeks, the most likely scenario for cross-movement will be "sideways" between the closest oncoming zones. After its completion will be promising purchase tool.

Resistance zones:

- 125.20 / 125.70

Support areas:

- 123.30 / 122.80

Explanations for the figures: The simplified wave analysis uses waves consisting of 3 parts (A – B – C). For analysis, 3 consecutive graphs are used. Each of them analyzes the last, incomplete wave. 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.

Attention: 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!