Dear traders,
As for the EUR/JPY and GBP/JPY pairs the important levels are left almost without changes, and we are following the development of the rising structure since May 6.
In my analytical review I will analyze the development of the structure for the next week for such pairs as EUR/JPY and GBP/JPY. Having read it, you should realize more clearly a possible prospective of the currencies development. In my method, for a simpler representation I use the standard notions of the technical analysis, such as: the support and resistance levels etc., 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 my 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 May 12:
For the EUR-JPY pair the significant levels are: 125.79, 124.30, 123.58, 122.37, 120.60, 118.87, 117.09, 116.16, 115.05 and 114.21. Here the key levels have remained almost unchanged. In the band 117.09 – 116.16 a consolidation movement is expected, and from this level an upward recoil is likely. A short-term growing movement is forecasted after breaking through the level of 118.87, with a potential target of 120.60, although the level can be not reached by the price, getting through it will lead to the rising tendency development with the 1st target of 122.37. Further on the key targets and the strategy are left unchanged.
Trading recommendations:
Buy: 118.87 Take profit: 120.45
Buy: 122.38 Take profit: 123.58
Buy: 124.30 Take profit: 125.76
Sell: 116.16 Take profit: 115.05
The important levels for the pound-yen pair are: 145.31, 144.55, 143.35, 140.79, 140.12, 136.70, 135.91, 134.90, 133.69 and 132.94. The key levels are kept unchanged. I want to remind that we are observing an uprising since May 6 structure. There still no initial conditions for a decline, and we consider it as a correctional. A short-term falling is awaited in within 136.70 – 135.91, breaking through the last reading will cause a deepening movement, here the target is 134.90, from this level a key upward-directed pull back is possible, hitting it will have a negative influence on the development of the rising from May 6 structure, here the potential aim is 133.69. The diapason of 133.69 – 132.94 is a key support for the high and is interesting from the mid-term prospect. After passing through the noise diapason of 140.12 – 140.79 a continuation of the uprising progress is expected, here the 1st target 143.35. In the band 143.35 – 144.55 there will be a price consolidation. After passing the noise diapason 144.55 – 145.31 a movement to the potential target of 147.21 can be expected, having reached which a downward rebound is waited for.
Trading recommendations:
Buy: 140.79 Take profit: 143.35
Buy: 143.35 Take profit: 144.55
Sell: 145.16 Take profit: 143.35
Sell: 136.70 Take profit: 135.91
Sell: 135.87 Take profit: 134.90
Note that presenting these trading recommendations I do not demonstrate all the potential of the structure development, I only show the most significant levels.
