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

Dear traders,

For EUR/JPY and GBP/JPY, the key levels remained unchanged. We do not see evident initial conditions for the ascendant correction development here.

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 13:

The important levels for EUR/JPY are 113.99, 112.30, 111.60, 111.01, 109.12, 108.66 and 107.69. Here, we are following the falling tendency from July 28. 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. In general, the potential level for the low is considered 107.69, 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: 109.12 Take profit: 108.67
Sell: 108.60 Take profit: 107.69

The major levels for GBP/JPY are 135.47, 134.90, 134.40, 132.70, 132.47 and 131.77. Here we are following further the development of the downward structure from August 3. The continuation of the falling movement is expected after the price passing the noisy range of 132.70 – 132.47, in this case the potential target is at 131.77, after reaching which a upward pullback is expected. For an increasing tendency, no initial conditions have been created yet. The development of the ascendant correction is awaited after the breakout of 134.40; here the target is 134.90. the price consolidation is due in this diapason. As a whole, the potential value for the top is considered 135.47 level for now. Form this level a key downward reversal is expected as well as the formation of potential initial conditions for the development of rising cycle.

Trading recommendation:
Buy: 134.93 Take profit: 135.47
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.