Fractal analysis for March 12, 2010 ^2010-03-12

Good morning, dear traders.

We are continuing to observe the development of the increasing movement of the EUR/JPY pair, however, we do not exclude the possibility of downward pullbacks for maintenance of the potential.  For the GBP/JPY pair, we do not see any initial conditions for development of a descending tendency.

Dear traders, in my analytical review I will give consideration to the structure development for the upcoming week on such currency pairs as: the EUR/JPY and GBP/JPY. After reading it, you will exhibit possible perspectives of currencies movements more clearly and obviously. I use standard terms of technical analysis for simpler presentation in my method, as support and resistance levels, but my method by itself is based on fractal function and has a deep meaning of current and further developments consciousness. I do all my calculations from initial conditions of the turnover developing. I show the price movement from initial conditions with a black line. The alternative motion is pointed with a red one. As a rule, I indicate a correctional movement with a red line and a short-term exit out of the level.

Forecast for March 12:

For the EUR/JPY pair, the important levels are 127.26, 126.60, 125.27, 124.96, 124.14, 122.76, 122.40, 121.76, 121.26, 121.03, and 120.52. Here, the main targets remained unchanged. We are waiting for the upward movement continuation to the level of 124.96 after the price passes the level of 124.14. In the diapason of 124.96 – 125.27, we are expecting the consolidation of the price. A short-term descendant movement is possible after a breakout of the level of 123.56, in this case targets are not determined. The range of 122.91 – 122.54 is the key support for the ascendant structure from February 25, the price breaking through it will influence negatively on the cycle extending. Further levels left without changes.

For the GBP/JPY pair the significant levels are 140.28, 138.50, 137.66, 137.28, 135.91, 135.44, 134.65, 134.32, 133.84, 133.48, and 132.29. Here, the potential target for the upward movement is 137.28, after its reaching the price consolidation is probable. The price overcome of the noise diapason of 137.28 – 137.66 will make motion to 138.50 possible. After preliminary rollback from 138.50, impulsive movement is  expected, here target is 140.28. A short-term downward movement is possible in the 135.91 – 135.44 diapason, the price can go beyond the later value. The range of 134.65 – 134.32 is the key support for the downward structure. If the price breaks though it, it will affect development of the upward tendency negatively, here the first target is 133.84. Further, descending levels have been unchanged.

The analytics was made by Alexey Almazov.