Dear traders,
For EUR/JPY and GBP/JPY, the key levels remained unchanged. We do not see evident initial conditions for the ascendant tendency development.
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 August 19:
The important levels for EUR/JPY are 113.99, 112.30, 111.60, 111.01, 109.12, 108.66, 107.69, 107.41 and 106.40. Here, the key levels remained unchanged. We are not observing shaped structure for the top. A short-term downward motion is possible in the range of 109.12 – 108.66. From here, there is a high probability of reversal to correction. Breakout of the level of 108.66 should be accompanied by a precise falling movement, in this case the target is 107.69, in the range of 107.69 – 107.41 the price consolidation is due. The potential value for the descendant tendency is considered 106.40, after reaching which an upward retrace is expected. There are no any initial conditions for the uprising tendency. A correctional ascending movement is possible in the range of 111.01 – 111.60, break of the last figure will cause the deepening to the level of 112.30, where from a key bounce back downwards is awaited. The breach of this level will affect negatively the further upward structure in H1 scale. The level of 113.99 is a key resistance for the high and is interesting in a mid-term outlook.
Trading recommendations:
Buy: 111.01 Take profit: 111.60
Buy: 111.65 Take profit: 112.30
Sell: 108.60 Take profit: 107.69
Sell: 107.41 Take profit: 106.40
The major levels for GBP/JPY are 136.01, 135.33, 134.90, 134.04, 132.70, 132.47 and 131.77. Here the further development of the downward movement is expected after the price passing the noise diapason of 132.70 – 132.47, in this case the potential target is 131.77, after attainment of which the price consolidation is awaited. For an increasing tendency, no initial conditions have been created yet.
The level of 134.04 is a key resistance, breach of it will be favorable for the development of the ascendant tendency in H1 scale. In this case the first target is 134.90, the price consolidation is expected in the range of 134.90 – 135.33. The potential value for the top is considered 136.01 level. Before hitting this level initial conditions for the development of rising cycle should form.
Trading recommendation:
Buy: 134.04 Take profit: 134.90
Sell: 132.47 Take profit: 131.77
Please, note that making this trading recommendations we take into account not all potential of the structure development, but only the major levels.