Let me bring to your attention a comprehensive analysis of the development options for the currency movement of the "country of the rising sun" USD / JPY and its cross-instruments EUR / JPY and GBP / JPY from September 04, 2019.
Minuette operational scale (H4 timeframe)
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US dollar vs Japanese yen
On September 4, 2019, the development of the USD / JPY currency movement of the "country of the rising sun" will be determined by the development and direction of the breakdown of the boundaries of 1/2 Median Line channel (105.85 - 105.60 - 105.30) of the Minuette operational scale fork. The movement markings inside this channel are shown in the animated chart.
The breakdown of the lower boundary of the 1/2 Median Line channel (support level of 106.000) of the Minuette operational scale fork will make it possible for the currency of the country of the rising sun to reach the boundaries of the equilibrium zones of the Minuette operational scale fork - Minuette (105.850 - 105.550 - 105.300) and Minuette (105.750 - 105.200 - 104.650), as well as the 1/2 Median Line Minuette channel (104.650 - 104.400 - 104.100).
On the other hand, in case of breakdown of the upper boundary of the 1/2 Median Line channel (resistance level of 106.850) of the Minuette operational scale fork, the upward movement of USD / JPY can be continued to the goals - the initial SSL Minuette line (107.490) - the UTL control line (107.950) of the Minuette operational scale fork.
The details of the USD / JPY movement, depending on the breakdown direction of the 1 / 2 Median Line Minuette channel mentioned above, are shown in the animated chart.
Euro vs Japanese Yyen
On September 4, 2019, the development of the cross-instrument EUR / JPY movement will be determined by working out and the direction of the breakdown of the range :
- resistance level of 116.300 (the initial line of SSL of the Minuette operational scale fork);
- support level of 115.900 (control line LTL Minuette operational scale fork).
The breakdown of the SSL Minuette start line (resistance level of 116.300) will direct the development of the movement of this cross-instrument to the boundaries of the 1/2 Median Line Minuette channel (117.00 - 117.300 - 117.650), and if the upper boundary (117.650) of this channel breakdown, the upward movement of EUR / JPY may be continued to the boundaries of the equilibrium zones of the Minuette operational scale fork (118.250 - 118.800 - 119.450) and Minuette (118.800 - 119.250 - 119.800).
In case of breakdown of the LTL control line (support level of 115.900) of the Minuette operational scale fork, the downward movement of EUR / JPY will continue to the warning lines - LWL38.2 (115.300) - LWL61.8 (114.650) - LWL100.0 (113.650) of the Minuette operational scale fork.
The details of the movement of EUR / JPY depending on the development of the boundaries of this range are presented in the animated chart.
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Great Britain pound vs Japanese yen
On September 4, 2019, the development of the cross-instrument movement GBP / JPY will also be determined by the direction of the breakdown of the range :
- resistance level of 128.400 (the lower boundary of the 1/2 Median Line channel Minuette operational scale fork);
- support level of 127.550 (reaction line RL38.2 Minuette operational scale fork).
A combined breakdown of the resistance level of 128.400 and the UTL control line (resistance level of 128.650) of the Minuette operational scale forks will determine the development of the movement of this cross-instrument in the 1/2 Median Line Minuette channel (128.400 - 129.600 - 130.800) with the prospect that the price GBP / JPY reaches the lower boundary of ISL38 .2 (132.400) equilibrium zones of the Minuette operational scale fork.
The breakdown of the RL38.2 reaction line (support level of 127.550) of the Minuette operational scale fork will direct the development of GBP / JPY movement towards the goals - the initial SSL Minuette line (127.000) - the 1/2 Median Line Minuette channel (126.200 - 125.400 - 124.500) with the prospect of reaching the upper boundaries of ISL38.2 (123.650) of the Minuette operational scale fork.
We look at the animated chart for the GBP / JPY movement options, depending on the breakdown direction of the above range.
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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