Dear traders,
As for the EUR/JPY pair, there is a cancellation of the small initial conditions for the high development and we are still following the formation of the downfalling structure from May 10. As for the GBP/JPY pair, currently we can observe a good correlation with EUR/JPY and the continuation of a decline happens here as well.
In my analytical review I will analyze the development of the structure for the next week for such pairs as EUR/JPY and GBP/JPY. Having read it, you should realize more clearly a possible prospective of the currencies development. In my method, for a simpler representation I use the standard notions of the technical analysis, such as: the support and resistance levels etc., though the method itself is based on the properties of the fractal function and has a deep meaning of the current and the future situation understanding. All my calculations are made from the initial conditions of the cycle development. The direction of the price movement from the current initial conditions are shown with a black arrow line. The alternative movement is shown with a red arrow line, in case of breaking through the key levels for cancellation of the uprising or downfalling cycle. As a rule, the red line also indicates the correctional movement and a short-term exit through the level. Do not use only the images; study the text in order to understand the progress of the event.
Forecast for May 19:
For the EUR/JPY pair the important levels are: 116.77, 115.80, 114.09, 113.45, 112.82, 111.20, 110.27 and 108.27. The initial conditions for the uprising movement have been cancelled here and we are keeping the observation of the declining trend since May 10. A short-term slide is expected within the diapason of 111.20 – 110.27, breaking through the last reading will cause the advance to the potential target of пробой 108.27, having reached which the price will rebound upwards. A correctional ascending movement is possible in the limits of 112.82 – 113.45, getting through the last level will bring to a deepened correction, the target here is 114.09, from this level a key downward pull back is awaited, breaking through it will favour the rising tendency development, the potential target here is 115.80. The diapason of 115.80 – 116.77 is a key resistance for the high and before it we are expecting the formation of the initial conditions for the growth cycle.
Trading recommendation:
Buy: 112.82 Take profit: 113.45
Buy: 114.50 Take profit: 115.80
Sell: 111.20 Take profit: 110.29
Sell: 110.27 Take profit: 108.27
For the GBP/JPY pair the significant levels are: 135.19, 134.42, 132.78, 130.81, 130.08, 128.35, 127.62 and 126.07. There is also a cancellation of the initial conditions for the uprising movement since May 17. A short-term decline is expected around 130.81 – 130.08, hitting the last level should be accompanied by a vivid downfalling movement, here the target is 128.35, in the corridor 128.35 – 127.62 a price consolidation due. The level of 126.07 is considered a potential low, after which an upward pull back is forecasted. A short-term uprise is likely after breaking through the level of 132.78, the potential target is 134.42, and however the level can remain untouched by the price. The key resistance for the high is the diapason of 134.42 – 135.19 after it has been passed by the price we can expect the formation of the initial conditions for the uprising trend development in H1 scale.
Trading recommendation:
Buy: 132.78 Take profit: 133.75
Buy: 127.62 Take profit: 130.08
Sell: 130.06 Take profit: 128.35
Sell: 127.40 Take profit: 126.07
Please, note that making my trading recommendations I take into account not all potential of the structure development, but only the major levels.