Dear traders,
For EUR/JPY pair we observed an impulsive upward movement. Here we are following the ascendant structure from September 8 as middle-term initial conditions for uprising cycle. For GBP/JPY pair, we are watching the local ascendant tendency from September 14. In addition, it should be noted that correlation between GBP/JPY and EUR/JPY is strong and it allows us avoid false breakouts on the GBP/JPY pair.
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 September 15:
The important levels for EUR/JPY are 111.39, 110.54, 110.21, 109.35, 109.02, 108.63 and 107.66. Here, we are following the upward structure from September 8. A short-term rising motion is possible in the range of 110.21 – 110.54, here there is a high possibility of a downward pullback and correction. A breakout of 110.54 level will cause development of an evident upward movement, in this case the potential target is 111.39, after reaching which a downward rollback is expected. A correctional descendant movement is probable to take place in the range of 109.35 – 109.02, the breach of the last reading will lead to a deeper motion; in this case the target is 108.63. From this level we are expecting the key reversal upwards, the breaking through it will negatively influence on further development of the ascendant tendency in H1 scale. The level of 107.66 is key support for the top and it is interesting in middle-term outlook. Before this level initial conditions for the decreasing cycle should develop.
Trading recommendations:
Buy: 110.21 Take profit: 110.54
Buy: 110.60 Take profit: 111.39
Sell: 109.35 Take profit: 109.02
Sell: 109.00 Take profit: 108.63
The major levels for GBP/JPY are 132.73, 131.99, 131.75, 130.62, 130.27, 129.81 and 128.35. Here, despite the cancelation of initial conditions from September 7, the local upward structure from September 14 has formed. A short-term uprising movement is possible in the range of 131.75 – 131.99. There is a high probability of downward pullback here. Breach of the level of 131.99 should be accompanied by the well-defined motion to the potential target of 132.73, after attainment of which a downward pullback is awaited. There are no any initial conditions for a falling tendency and it is considered as correctional. Correction is possible in the range of 130.62 – 130.27. Breakout of the last reading will lead to a deeper movement, here the target is 129.81. From this level we are expecting the key reversal upwards. The breakout of it will influence negatively on further formation of the ascendant structure from September 14. The level of 128.35 is key support for the top and is interesting in mid-term outlook.
Trading recommendation:
Buy: 131.75 Take profit: 131.99
Buy: 132.00 Take profit: 132.73
Sell: 130.62 Take profit: 130.27
Sell: 130.25 Take profit: 129.81
Please, note that making this trading recommendations we take into account not all potential of the structure development, but only the major levels.
