Dear traders,
For the EUR/JPY and the GBP/JPY pairs, key levels remained unchanged and the situation clearance is expected here. In general, as a major tendency is considered downward because there are initial conditions for that for both pairs.
In this analytical review, we will analyze the development of the structure for today for such pairs as EUR/JPY and GBP/JPY. Having read it, you should realize more clearly possible prospects of the currencies development. In this method, for a simpler representation we use the standard notions of the technical analysis, such as support and resistance levels, 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 the 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 July 21:
For EUR/JPY the significant levels are 116.39, 115.46, 115.08, 113.90, 113.49, 111.93, 111.05, 110.70, 110.04 and 108.85. Here, the key levels practically remained unchanged. The further ascendant motion is expected after the price passage of the noise range of 113.49 – 113.90, in this case the target is at 115.08, in the corridor of 115.08 – 115.46 is price consolidation. The potential value for the top is considered 116.39, after reaching of which a downward rollback is awaited. For a decreasing movement, some initial conditions are observed. A correctional downward movement is possible after the hit of the level of 111.93, here the potential target is at 111.05, however, there is a possibility that the level will not be reached by the price. The price consolidation is in the range of 111.05 – 110.70, the breakout of the last reading will cause a motion to 110.04, around which consolidation is also awaited. The potential value for downward tendency is considered 108.85 for now, after a hit of which an upward pullback is expected.
Trading recommendations:
Buy: 113.90 Take profit: 115.08
Buy: 115.50 Take profit: 116.39
Sell: 110.70 Take profit: 110.04
Sell: 110.00 Take profit: 108.85
For the GBP/JPY pair the important levels are: 135.71, 135.45, 134.43, 133.84, 133.42, 131.89, 131.18, 130.94, 129.80 and 129.27. Here we considered the falling structure from July 14 in H1 scale as potential initial conditions for downward cycle. The decreasing movement continuation is expected after a breach of 131.89, in this case the target is at 131.18, nearly this level the price consolidation due. The price going through of the noise diapason of 131.18 – 130.94 will lead to an impulse development, here a target is 129.80. A potential value for the low is 129.27, after the reach of which a consolidate movement in the corridor of 129.27 – 129.80 is awaited. At the present moment, there are no local initial conditions for ascendant movement. A correctional rising movement is possible to take place in the diapason of 133.42 – 133.84, the breach of the last reading will cause a deeper motion, here the target is 134.43, from this level a key downward reversal is to take place. The breakthrough of it will influence negatively on the upward tendency from July 14 extending. In whole, 135.45 is a key resistance for the upward tendency, before it we should see the formation of initial conditions for cycle development.
Trading recommendation:
Buy: 133.84 Take profit: 134.43
Buy: 134.50 Take profit: 135.45
Sell: 131.89 Take profit: 131.18
Sell: 130.92 Take profit: 129.80
Please, note that making this trading recommendations we take into account not all potential of the structure development, but only the major levels.