Dear traders,
For the EUR/JPY and the GBP/JPY pairs, the key levels remained unchanged. I remind you that as a major tendency is considered an upward. A decreasing motion is taken into account as a correction because there are no any initial conditions for it.
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 27:
For EUR/JPY the significant levels are 115.68, 114.79, 114.39, 113.48, 112.50, 111.61, 111.31, 110.85 and 109.91. Here, since July 22 we have been following the formation of initial conditions for an uprising cycle development. The further ascendant motion as an impulse is expected after the breakout of the level of 113.48, in this case the target is at 114.39, in the corridor of 114.39 – 114.79 is price consolidation. The potential value for the top is considered 115.68, after reaching of which a downward rollback is awaited. A short-term downward movement is possible after the hit of the level of 112.50, in this case targets are not determined. The diapason of 111.61 – 111.31 is key upward support, the price passing through it will cause a deeper correction, here the target is 110.85. From this level we expect a key upward reversal. The breach of this level will lead to the cancelation of development of the ascendant structure from July 22. The potential value for the downside is considered 109.91. Before this level we wait for the formation of initial conditions for a downward cycle development.
Trading recommendations:
Buy: 113.48 Take profit: 114.39
Buy: 114.80 Take profit: 115.68
Sell: 111.31 Take profit: 110.85
Sell: 110.80 Take profit: 109.91
For the GBP/JPY pair the important levels are: 137.19, 136.28, 135.88, 134.54, 134.14, 133.62 and 132.29. Here we are following the development of a small upward cycle from July 22. A short-term ascendant movement is expected in the range of 135.88 – 136.28, a breach of the last reading will cause a pronounced rising motion, here the target is 137.19, after reaching of which a downward pullback is awaited. A correctional falling movement is possible to take place in the diapason of 134.54 – 134.14, the breach of the last reading will cause a deeper motion, here the target is 133.62, after the hit of which we expect an upward rollback. The breakthrough of it will influence negatively on the upward tendency extending in H1 scale. The level of 132.29 is key support for the motion upwards, before it we await for the formation of initial conditions for a downward cycle.
Trading recommendation:
Buy: 136.30 Take profit: 137.19
Sell: 134.14 Take profit: 133.62
Please, note that making this trading recommendations we take into account not all potential of the structure development, but only the major levels.
