Dear traders,
For the EUR/JPY, the main targets remained unchanged and here the downward structure from July 28 is considered as initial points. For GBP/JPY, despite that the upward structure from July 30 is still of interest here there is good potential for the descendant motion from August 3.
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 10:
The important levels for EUR/JPY are 115.84, 115.54, 114.79, 114.39, 113.87, 112.69, 112.51, 112.08, 111.61 and 111.31. Here, the key levels left without changes and for now we are following the falling tendency from July 28 as major initial conditions in H1. The further downward motion is awaited after the price going through the noise range of 112.69 - 112.51. In this case a target is at 112.08. Before this level potential initial conditions for the further development of the descendant structure should have formed. In general, the potential downward value is 111.61, the movement to which is possible after he breakout of the level of 112.08. In the corridor of 111.61 – 111.31 the price consolidation is due. Concerning the upward movement, the breach of 113.87 will be favorable for its development. In this case the first target will be 114.39. Further, the main levels for the high remained unchanged.
Trading recommendations:
Buy: 114.39 Take profit: 114.75
Buy: 114.85 Take profit: 115.54
Sell: 112.51 Take profit: 112.08
Sell: 112.05 Take profit: 111.61
The major levels for GBP/JPY are 137.80, 137.26, 137.01, 136.26, 135.89, 135.24, 134.61, 134.31, 133.71 and 133.38. Here we are following further the development of the downward structure from August 3. The continuation of the falling movement is expected after the breakout of 135.24 level, in this case the target is at 134.61. In the range of 134.61 – 134.31 the price consolidation is due. The breach of the level of 134.31 will allow the further development of the descendant tendency; here the target is 133.71. A potential value for the bottom is considered 133.38 level, after reaching of which consolidation in the corridor of 133.71 – 133.38 is awaited. A correctional rising movement is possible to take place in the diapason of 135.89 – 136.26, the breach of the last reading will affect negatively the downward structure development; here a potential target is 137.01. However, the level will not probably be reached by the price. The diapason of 137.01 – 137.26 is a key support for the low, the breach of it will be favorable for the upward development; here the target is 137.80. Also, it is necessary to consider that the rising structure from July 30 is still of interest.
Trading recommendation:
Buy: 138.00 Take profit: 139.81
Buy: 139.90 Take profit: 141.20
Sell: 135.20 Take profit: 134.61
Sell: 134.30 Take profit: 133.71
Please, note that making this trading recommendations we take into account not all potential of the structure development, but only the major levels.
Performed by Aleksey Almazov, Analytical expert
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