As for the EUR/JPY pair, we continue to observe development of the uprising cycle from July 1. For now, we do not see any initial conditions for a decreasing tendency; therefore, we consider downward motion as a correction. As for the GBP/JPY pair, we observed the long-term ascendant structure from May 20, 2010 and the local upward cycle from July 7. There are no initial conditions for descendant tendency as well.
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 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 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 14:
For the EUR/JPY, the significant levels are: 116.41, 115.46, 115.08, 113.95, 113.49, 112.45, 112.08, 111.56, 110.70 and 110.24. Here, a brief ascendant motion is expected in the range of 113.95 – 113.49, the breach of the level of 113.95 will lead to an impulse, in this case the target is at 115.08, in the corridor of 115.08 – 115.46 is price consolidation. The potential value for the top is considered 116.41, after reaching of which a downward rollback is awaited. A correctional downward movement is possible in the diapason of 112.45 – 112.08, the breakout of the last reading will lead to a deeper motion, here the target is 111.56, from this level we await a key reversal upwards, the breach of it will influence negatively on the rising tendency development in H1 scale. The range of 110.70 – 110.24 is a key support for the high, before it we expect the formation of the initial conditions for downward cycle extending.
Trading recommendations:
Buy: 113.95 Take profit: 115.08
Buy: 115.50 Take profit: 116.41
Sell: 112.08 Take profit: 111.56
For the GBP/JPY pair the significant levels are: 138.79, 138.23, 137.11, 136.64, 135.71, 135.48, 134.06, 133.53 and 132.26. Here we are watching the long-term upward structure from May 20, 2010 and the local upward cycle from July 7. The further increasing movement is expected after the breakthrough of the level of 135.71, in this case the target is at 136.64, after reaching which a price consolidation due in the range of 136.64 – 137.11. In mid-term outlook, a potential value is 138.23, after hitting which a downward retracement and correction are expected. The diapason of 138.23 – 138.79 is noise. There are no any initial conditions for a falling motion for this pair. A correctional fall is probable between 134.43 – 134.06 levels, the breakout of the last reading will lead to a deeper motion, here the target is 133.53, from this level we await a key reversal upwards, the breach of it will influence negatively on the rising cycle development from July 7. The level of 132.26 is a key support for the high and interesting in mid-term outlook, before it we expect the formation of the initial conditions for downward cycle.
Trading recommendation:
Buy: 135.73 Take profit: 136.64
Buy: 137.11 Take profit: 138.23
Sell: 134.06 Take profit: 133.53
Please, note that making trading recommendations we take into account not all potential of the structure development, but only the major levels.
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