FX.co ★ Simplified wave analysis and forecast for EUR/USD, USD/JPY, and GBP/JPY on July 27

EUR/USD

Analysis:

The dominant upward wave of the euro trend since March has reached the lower limit of the preliminary target zone. The zone is projected from a large TF. Its width is more than 2 price figures. There are no reversal signals on the chart yet, so the trend is not expected to change in the coming days.

Forecast:

In the first half of the day today, there is a high probability of a flat mood of the movement. It is possible to reduce it to the area of settlement support. By the end of the day, you can expect the continuation of the upward course, with an attempt to break through the nearest resistance.

Potential reversal zones

Resistance:

- 1.1810/1.1840

- 1.1720/1.1750

Support:

- 1.1660/1.1630

Recommendations:

Trading against the trend direction in the euro market is still a risky activity. We recommend that you pay full attention to searching for signals to buy the instrument.

USD/JPY

Analysis:

On the chart of the Japanese yen since the end of March, the price is developing a downward correction of the bullish wave of the senior TF. The pair's quotes have reached the upper limit of the potential large-scale reversal zone. However, the structure of the descending wave does not show completeness. It is worth waiting for the continuation of the rise.

Forecast:

In the coming day, the pair's chart is expected to show a sideways movement between the nearest counter zones. In the first half of the day, short-term price growth is likely. You can expect a second attempt to decline by the end of the day or tomorrow.

Potential reversal zones

Resistance:

- 106.00/106.30

Support:

- 105.30/105.00

Recommendations:

Trading on the yen market today is only possible with an intraday trading style. Purchases can be risky, they should reduce the lot. Priority to sales of the pair.

GBP/JPY

Analysis:

Since June 8, a downward zigzag has been developing on the cross chart. On the daily scale of the chart, it corrects the previous section of the trend. The structure of the wave is nearing completion in the middle part (C). Reversal signal is not observed. The preliminary target zone is located in the area of the far resistance zone.

Forecast:

Today, the pair's quotes are expected to move in the side corridor between the nearest counter zones. A flat mood is likely in the next session. Activity is likely at the end of the day. If the nearest resistance breaks, the rise will continue.

Potential reversal zones

Resistance:

- 137.50/137.80

- 136.40/136.70

Support:

- 135.30/135.00

Recommendations:

Until clear unambiguous reversal signals appear, you should give priority to purchases of the pair in trading transactions.

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!