Let's consider how further the development of the USD / JPY currency movement of the "country of the rising sun" and its cross-instrument EUR / JPY and GBP / JPY will begin to flow from August 08, 2019.
Minuette operational scale (H4 timeframe)
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US dollar vs Japanese yen
The development of the currency movement of the "country of the rising sun" USD / JPY from August 08, 2019 will be determined by the direction of the breakdown of the range:
- resistance level 106.05 (lower limit of the ISL61.8 equilibrium zone of the forks of the operational scale Minute);
- support level 105.60 (start line SSL forks of operational scale Minuette).
A joint breakdown of the SSL start line (resistance level 105.60) forks of the Minuette operational scale, the final Shiff Line Minute (105.35) and the LTL Minuette control line (105.15) will make it possible to continue the downward movement of the currency of the "rising sun" to the final FSL (104.25) and warning LWL38 .2 (103.35) lines of forks of operational scale Minute.
If breakdown ISL61.8 Minute takes place (resistance level 108.25), then the development of the USD / JPY movement will continue within the boundaries of the equilibrium zones Minute (106.05 - 106.60 - 107.10) and Minuette (107.10 - 107.35 - 108.00).
Details of the movement of USD / JPY, depending on the direction of breakdown of the range, are shown in the animated chart.
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Euro vs Japanese yen
The development of the EUR / JPY cross-tool movement from August 08, 2019 will be determined by the development and direction of the breakdown of the boundaries of the equilibrium zone (119.20 - 118.85 - 118.40) of the forks of the Minuette operational scale ( we look at the markup on the animation chart).
Successful breakdown of the lower boundary of ISL38.2 (support level 118.40) of the equilibrium zone of the forks of the operational scale Minuette and ISL38.2 Minute (118.30) will determine the development of the EUR / JPY movement within the boundaries of the equilibrium zone (118.30 - 117.70 - 117.10) of the forks of the operational scale Minute and channel 1/2 Median Line (117.50 - 117.25 - 116.85) forks of operational scale Minuette.
In case of breakdown of the upper boundary ISL61.8 (resistance level 119.20) of the equilibrium zone of the forks of the operational scale Minuette, the development of the movement of this cross-tool will continue in the 1/2 channel Median Line ( 119.05 - 119.50 - 119.90) of the forks of the operational scale Minute with the prospect of reaching the initial SSL line Minute (120.05) and the final line FSL Minuette (120.35).
Details of the movement of EUR / JPY depending on the development of the boundaries of this zone are presented on the animation chart.
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Great Britain Pound vs Japanese Yen
And the movement of the GBP / JPY cross-instrument from August 08, 2019 will depend on the development and direction of the breakdown of the channel boundaries 1/2 Median Line (128.40 - 129.00 - 129.40) of the operational scale Minuette (see the animation for details).
If the support level of 128.40 is broken down at the lower boundary of the 1/2 Median Line channel of the forks of the operational Minuette scale and the local minimum of 128.07 is updated, the downward movement of GBP / JPY to the targets will be possible to continue - the initial SSL Minuette line (127.50) - the final FSL line (126.90) forks operational scale Minute - control line LTL Minuette (126.55) with the prospect of reaching the warning line LWL38.2 Minute (125.35).
The breakdown of the resistance level of 129.40 (the upper boundary of the channel 1/2 Median Line Minuette) will direct the development of the movement of this cross-instrument to the borders of the equilibrium zones of the pitchforks of the operational scales Minuette ( 129.80 - 130.40 - 131.10) and Minute (129.80 - 130.75 - 131.60).
The GBP / JPY movement options, depending on the direction of the breakdown of the 1/2 Median Line channel Minuette, are presented in the animated chart.
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The review is made without taking into account the news background. The opening of trading sessions of the main financial centers does not serve as a guide to action (placing orders "sell" or "buy").
The formula for calculating the dollar index:
USDX = 50.14348112 * USDEUR0.576 * USDJPY0.136 * USDGBP0.119 * USDCAD0.091 * USDSEK0.042 * USDCHF0.036.
where the power coefficients correspond to the weights of the currencies in the basket:
Euro - 57.6%;
Yen - 13.6% ;
Pound Sterling - 11.9%;
Canadian dollar - 9.1%;
Swedish Krona - 4.2%;
Swiss franc - 3.6%.
The first coefficient in the formula leads the index to 100 at the start date of the countdown - March 1973, when the main currencies began to be freely quoted relative to each other.
The material has been provided by InstaForex Company - www.instaforex.com