The end of “Head & Shoulders”. EUR/JPY wave analysis.

01.09.2014

Analysis for September 1st, 2014



In our previous review, “Another “Head & Shoulders”. Wave analysis of EUR/JPY for 21.08.2014”, we discussed a possible scenario how the price may continue an ascending zigzag(d) of [iv].



Possibly, an ascending zigzag(d) of [iv] started with wedgea of (d). Right now, the price is finishing (or has already finished) a descending zigzagb of (d), after which the uptrend may continue inside wave c of (d). The critical level for this scenario is at 135.71.

In terms of technical analysis, the price formed upside down head & shoulders pattern (in green ellipse).



Mid-term expectations haven’t changed much. The current chart structure implies that the pair is forming a horizontal correction [iv] of C of (C), which may be followed by the final ascending wave [v] of C. One of the main waves of triangle patterns is usually the longest and most complicated, so possibly the third zigzag(c) of [iv] may turn out just this type of wave

If this assumption is correct, then in the nearest future the price is expected to continue forming the final zigzags(d) and (e) of [iv] of triangle[iv] of C of (C).

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

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