Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-07-08
Dear traders,
As for the EUR/JPY pair, we continue to observe development of the uprising structure from July 1, also we do not see any initial conditions for a decreasing tendency, therefore, for now, we consider it as a correction. As for the GBP/JPY pair, we are following the formation of the upward structure from July 7 in M15 scale.
In my analytical review, I 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 my method, for a simpler representation I 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 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 July 8:
For the EUR/JPY, the important levels are: 113.95, 113.49, 112.63, 112.14, 111.05, 110.70, 110.24, 109.22 and 108.85. Here, a brief ascendant motion is expected in the range of 112.14 – 112.63, the breach of the last reading should be accompanied by a well-defined movement to the level of 113.49. the potential value for the top is considered 113.95, in the corridor of 113.95 – 113.49 is price consolidation. A correctional downward movement is possible in the diapason of 11.05 – 110.70, the breakout of the last reading will lead to a deeper motion, here the target is 110.24, from this level we await a key reversal to upwards, the breach of it will influence negatively on the rising tendency development in H1 scale. The range of 109.22 – 108.85 is a key support for the high, before it we expect the formation of the initial conditions for downward movement extending.
Trading recommendations:
Buy: 112.14 Take profit: 112.60
Buy: 112.70 Take profit: 113.49
Sell: 111.05 Take profit: 110.70
Sell: 110.60 Take profit: 110.24
