FX.co ★ Simplified wave analysis and forecast for GBP/USD and USD/JPY on May 29

GBP/USD

Analysis:

In the short term, the incomplete bearish wave of the British pound has been reporting since April 30. It traces the first parts (A-B). Since May 26, a reversal structure has been formed, preceding the beginning of the final part (C).

Forecast:

Today, the price rise is expected to end, the formation of a reversal, and the beginning of a decline in the pair's exchange rate. The lower limit of the expected daily move is the support zone. Its breakthrough is likely at the beginning of next week.

Potential reversal zones

Resistance:

- 1.2360/1.2390

Support:

- 1.2280/1.2250

Recommendations:

Purchases of the pound in the market today can be risky and is not recommended. It is proposed to track all emerging reversal signals for selling the instrument in the area of the calculated resistance.

USD/JPY

Analysis:

As part of the dominant upward wave of the Japanese yen chart, conditions are being prepared for an active rate rise in the final part (C) from May 6. In the structure of this section of the wave, the formation of an intermediate correction is completed.

Forecast:

Today, the downward mood of the movement is expected to end. Then you can wait for the formation of a reversal and the beginning of price growth. The active phase is likely at the end of the day or at the beginning of the next week.

Potential reversal zones

Resistance:

- 107.60/107.90

Support:

- 107.00/106.70

Recommendations:

Selling the yen today may be risky due to the expected small downside potential. We recommend that you focus on searching for buy signals in the area of settlement support.

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 the arrows shows the formed structure, and the dotted one shows the expected movements.

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