FX.co ★ Simplified wave analysis and forecast for GBP/USD and USD/JPY on September 21

GBP/USD

Analysis:

As part of the main trend wave in the structure of the British pound, a counter correction in the form of a stretched plane ended 2 weeks ago. Since September 10, the price forms a reversal wave structure. In the last 3 days, the quotes form an intermediate pullback.

Forecast:

Today, in the first half of the day, we can expect pressure on the support zone. This will be followed by a reversal and the beginning of price growth. If the direction changes, a short-term breakout of the lower support border is possible.

Potential reversal zones

Resistance:

- 1.3030/1.3060

Support:

- 1.2910/1.2880

Recommendations:

Due to the expected small scale of the downward movement, sales of the pound are risky today. It is recommended to track the instrument purchase signals in the support area.

USD/JPY

Analysis:

The last section of the dominant downward wave in the Japanese yen market has been reporting since August 13. The price has reached the borders of a strong zone of a potential reversal of a large TF. There is a high probability of a price rebound from this level.

Forecast:

Today, the downward mood of the movement is expected to continue until its full completion. A reversal and the beginning of a new rise is most likely within the framework of the calculated support. The probability of a short-term puncture of the lower support border when changing the course cannot be excluded.

Potential reversal zones

Resistance:

- 104.80/105.10

Support:

- 104.10/103.80

Recommendations:

Trading on the pair's market today is only possible within the intra-session style. Until clear reversal signals appear, the priority is to sell. It is more reasonable to reduce the size of the lot.

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 background shows the expected movements.

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