Fractal analysis of the EUR/JPY and GBP/JPY pairs. Trading recommendations 2010-09-14
Dear traders, For EUR/JPY pair key levels remained unchanged. Here we are still waiting for development of the ascendant structure from September 8. The price of GBP/JPY pair is close to start a descendant tendency in H1 scale. However, taking into account the situation with EUR/JPY, the upward targets are topical. 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 14:
The important levels for EUR/JPY are 109.22, 108.74, 108.50, 108.13, 107.88, 106.53, 105.92, 105.41, 105.16, 104.15 and 103.57. Here, the key levels remained unchanged. We are following further the upward structure from September 8. A short-term rising motion is possible in the range of 107.88 – 108.13, breakout of the last reading should be accompanied by an evident movement to the level of 108.50. In the corridor of 108.50 – 108.74 price consolidation is due. A potential value for the top is considered 109.22 level, after attainment of which a downward pullback is expected. A correctional descendant movement is probable to take place after breaking through the level of 106.53; in this case the potential target is 105.92, although the level is not exactly to be reached by the price. Generally, 105.92 is key support for the top. The price going through it will cancel the development of the upward structure from September 8. In this case the first target is 105.41. Next key levels for the bottom remained without changes. Trading recommendations: Buy: 108.13 Take profit: 108.50 Buy: 108.74 Take profit: 109.22 Sell: 106.53 Take profit: 105.92 Sell: 105.90 Take profit: 105.41
The major levels for GBP/JPY are 132.88, 132.10, 131.75, 130.85, 130.42, 129.50, 128.35, 127.79, 127.18, 125.59, 124.89 and 123.29. Here, consolidated movement is expected in the range of 128.35 – 127.79. Breach of the last reading will start development of a falling tendency in H1 scale. Here, the first target is 127.18. An impulsive downward motion is expected after a breakout of 127.18, in this case the target is 125.59. In the range of 125.59 – 124.89 is price consolidation. Potential value for the low is considered 123.29 level, after reaching which an upward rollback is expected. The level of 129.50 is key support for downward tendency. Breaking through this level will be favorable for an uprising tendency development. In this case the potential upward target is 130.42. the price going through the noise diapason of 130.42 – 130.85 will start development of an increasing structure in H1 scale, here the first target is 131.75. As a whole, the upward levels stay topical because of development of the ascendant tendency on the EUR/JPY pair. Trading recommendation: Buy: 129.50 Take profit: 130.42 Buy: 130.85 Take profit: 131.75 Sell: 127.79 Take profit: 127.18 Sell: 127.15 Take profit: 125.59 Please, note that making this trading recommendations we take into account not all potential of the structure development, but only the major levels.
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