FX.co ★ Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations

Dear traders,

For the EUR/JPY pair, there are some preconditions for downward correction extending, though the major tendency remains uprising. For the GBP/JPY pair, we again consider the situation in M15 scale for more detailed view. There is potential for descendant movement here, which can lead to a deeper correction.

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 15:

For the EUR/JPY, the significant levels are: 116.39, 115.46, 115.08, 113.90, 113.49, 111.98, 111.66, 111.05, 110.70, 110.04 and 108.85. Here, 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. A correctional downward movement is possible after the hit of the level of 111.66, here the potential target is at 111.05, the price consolidation is expected around this level, the breach of it will influence negatively on the rising tendency development in H1 scale, in this case the first target is 110.04. Also before this level the formation of initial conditions apex for decreasing cycle is probable. The level of 108.85 is key resistance for downward motion and is interesting in mid-term outlook.

Trading recommendations:
Buy: 113.90 Take profit: 115.08
Buy: 115.50 Take profit: 116.39
Sell: 111.66 Take profit: 111.05
Sell: 110.70 Take profit: 110.04

For the GBP/JPY pair the important levels are: 137.11, 136.59, 135.71, 135.24, 135.12, 134.24, 133.92, 133.81, 133.35, 133.13, 132.60 and 132.40. Here for more detailed analysis we considered the structure in M15 scale. On July 14, at 11.00, some initial conditions for falling movement are forming, the development of which we await after the breakout of the level of 134.24, in this case the target is at 133.92, near this level the price consolidation due. A downward impulsive movement in this scale can be expected after the breakthrough of the level of 133.81, which will affect negatively the rising tendency development, here the target is 133.35. A price consolidation due in the range of 133.35 – 133.13. A potential value for the low is 132.60, before which the formation of significant initial conditions for descendant movement in H1 scale is awaited. The diapason of 132.60 – 132.40 is noise. Concerning upward motion, the breach of 135.24 will be favorable for its development. Here the first target is 135.71. the breakout of this level will lead to upward tendency extending in H1 scale, here the target is 136.59. The potential value for the top is considered 137.11 for now, after reaching of which the price consolidation is expected in the corridor of 136.59 – 137.11.

Trading recommendation:
Buy: 135.24 Take profit: 135.70
Buy: 135.75 Take profit: 136.59
Sell: 134.24 Take profit: 133.92
Sell: 133.80 Take profit: 133.35

Please, note that making this trading recommendations we take into account not all potential of the structure development, but only the major levels.