Simplified wave analysis of GBP/USD, USD/JPY, and USD/CHF on January 14

GBP/USD

Analysis:

Since July last year, the main direction of the movement of the British pound is set by an upward wave. Since mid-December, the price rolls back down, forming a correction. There is a clear zigzag in its structure. In the last 2 weeks, the final part (C) develops.

Forecast:

The rate of depreciation will decrease today due to a short-term pullback up. The scale of the probable rise demonstrates the calculated resistance. Return to the bearish vector movement is expected at the end of the day or tomorrow. At the same time, a sharp increase in the volatility of the pair is not excluded.

Potential reversal zones

Resistance:

– 1.3020/1.3050

Support:

– 1.2940/1.2910

– 1.2840/1.2810

Recommendations:

The purchases of the pound are not very promising today. It is recommended to track the reversal signals of your vehicles in the area of the resistance zone to find points of sale of the pair.

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USD/JPY

Analysis:

An upward wave has been forming on the Japanese yen chart since August last year. It sets the trend for all short-term fluctuations of the pair’s exchange rate. After the correction is completed on January 8, the price has a pronounced impulse movement. The nearest resistance after the pullback was broken, turning into support.

Forecast:

A general upward movement is expected in the next trading sessions. In the first half of the day, a short-term pullback to the support area is not excluded. The growth phase is more likely at the end of the day or the next day.

Potential reversal zones

Resistance:

– 110.60/110.90

Support:

– 109.90/109.60

Recommendations:

Yen sales are not recommended today. It is proposed to focus on the search for buy signals at the end of all counter price movements.

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USD/CHF

Analysis:

The latest current wave model of the franc chart is downward. The wave started in April last year. From November 29, the final part (C) is formed. The last 2 weeks in its framework is developing a correction. The price is in the zone of a potential reversal of a large scale.

Forecast:

Today, the flat nature of the pair’s price movement is expected to continue. In the first half of the day, a decrease is possible. Next, you should wait for a reversal and rise of the pair’s rate within the price corridor.

Potential reversal zones

Resistance:

– 0.9750/0.9780

Support:

– 0.9680/0.9650

Recommendations:

Trading on the pair market today is only possible with the intraday style. Purchases are more promising. In the area of the resistance zone, it is recommended to monitor the signals of the end of the price rise to find the points of sale of the pair.

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Explanations: 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 background shows the expected movements.

Attention: The wave algorithm does not take into account the duration of the tool movements in time!

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