Article By RoboForex.com

Analysis for December 5^th, 2014

In our previous review, “The final ascending movement of the price. Wave analysis of EUR/JPY for 28.11.2014”, we discussed a possible scenario how the price complete an ascending impulse [v] of C of (C).

Our mid-term expectations haven’t changed so far. The current chart structure implies that the pair may be completing the final ascending wave [v] of C of (C). If this assumption is correct, then later the price may start a new descending trend inside a large correction (B), maybe in the form of zigzag.

Indeed, the market has almost completed an ascending impulse [v] of C of (C) and got very close to the resistance level at 150. Moreover, its third wave, (iii) of [v], has formed extension. In this case, it’s quite logical to expect that its fifth wave, (v) of [v], may be equal in length to the first one, (i) of [v].

In addition to that, we can say that the fifth wave, (v) of [v], of an ascending impulse [v] is taking the form of ending wedge with its third wave as the shortest one, which usually happens in 15% of wedge-like patterns and implies the trend reversal in the nearest future.

However, at the same time one should remember that any possible scenario is subjective and the market may move in a completely different direction.

RoboForex Analytical Department

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.