Inside the final zigzag. GBP/JPY wave analysis

Analysis for August 28^th, 2014

In our previous review, “The final zigzag. Wave analysis of GBP/LPY for 18.08.2014”, we discussed one of the possible scenario how the price may complete the uptrend inside a possible impulse 5 of (1).



Probably, the market is forming the final ascending zigzag(v) of [v] of 5 of ending diagonal triangle[v] of 5. Possibly, the price completed a descending correction b of (v), which may be followed by an ascending wave с of (v).

The critical level for this scenario until the price completes an ascending zigzag (v) of [v] is at the level where this zigzag started, 170.40. In order to finish a complete diagonal triangle[v], the price needs to cross the confirming level at 175.33, which it the closest target.



Wave structure on the daily chart hasn’t changed much – the price is about to complete the final wave [v] of 5 of an ascending impulse 5 in the form of an ending diagonal triangle.

Considering an extension inside wave [iii] of 5 of an impulse 5 of (1), it’s quite logical to expect that waves [v] of 5 and [i] of 5 may be equal in length and the price may complete this diagonal triangle[v] of 5 lower than 180. However, at the same time we should note, that wave (iii) of [v] of diagonal triangle[v] of 5 is shorter than its first wave, (i) of [v], which means that the pair is expected to finish this diagonal triangle[v] of 5 not higher than ~178.

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