Simplified wave analysis for GBP/USD and USD/JPY on May 14

By | May 14, 2020
InstaForex
Simplified wave analysis for GBP/USD and USD/JPY on May 14

Relevance up to 03:00 2020-05-15 UTC–5

GBP/USD

Analysis:

On the chart of the British pound, the correction within the ascending wave from March 18 entered the final phase. The price has reached the upper limit of the potential large-scale reversal zone. There are no reversal signals on the chart yet.

Forecast:

In the nearest trading sessions, the price is likely to move in the side corridor between the nearest counter zones. In the first half, the price rise is more likely. Growth above the upper limit of the calculated resistance is unlikely. Then you should wait for a change of course and a second decline.

Potential reversal zones

Resistance:

– 1.2250/1.2280

Support:

– 1.2190/1.2160

Recommendations:

Purchases of the pound today are possible only with an intra-session trading style, with a reduced lot. We recommend that you focus on searching for sell signals in the area of the resistance zone.

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USD/JPY

Analysis:

In the structure of the rising wave from March 9, the Japanese yen chart shows a clear sequence (A-B). The price rise that started on May 6 has a reversal potential and may be the beginning of the final section of the wave (C). The pullback of the last days does not go beyond the correction of the bullish wave.

Forecast:

Today, the general flat mood of movement between the nearest oncoming zones is expected, until the full completion of the current downward section. By the end of the day, the formation of a reversal and the beginning of the growth of the pair’s rate is likely.

Potential reversal zones

Resistance:

– 107.30/107.70

Support:

– 106.70/106.40

Recommendations:

There are no conditions for selling the Japanese yen today. It is recommended to track all emerging instrument purchase signals in the area of the support zone.

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Explanation: In the simplified wave analysis (UVA), waves consist of 3 parts (A-B-C). The last incomplete wave is analyzed. The solid background of arrows shows the formed structure, and the dotted ones show the expected movements.

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

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Performed by Isabel Clark,
Analytical expert
InstaForex Group © 2007-2020

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