We would like to bring to your attention a comprehensive analysis of the development options for the movement of the cross-instruments EUR / JPY and GBP / JPY , as well as the dollar index #USDX and the currency of the "land of the rising sun" USD / JPY currency from October 09, 2019.
Minuette (H4 timeframe)
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US dollar Index
The development of the USDX dollar index movement will be determined by the development and direction of the breakdown of the boundaries of 1/2 Median Line channel (99.15 - 98.95 - 98.75) Minuette operational scale fork. The details are shown in the animated chart.
The breakdown of the upper boundary of the 1/2 Median Line channel (resistance level 99.15) of the Minuette operational scale fork - the development of the #USDX movement will continue to the boundaries of the 1/2 Median Line Minuette channel (99.25 - 99.40 - 99.55) with the prospect of reaching the equilibrium zone (99.60 - 99.75 - 99.95) of the Minuette operational scale fork.
On the contrary, if the lower boundary of the 1/2 Median Line Minuette channel (support level 98.75), equilibrium zone of the Minuette operational scale fork is broken, the downward movement of the dollar index can continue to the local minimum 98.64 - the upper boundary of ISL38.2 (98.45) equilibrium zone of the Minuette operational scale fork.
The details of the #USDX movement are presented in the animated chart.
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US dollar vs Japanese yen
The currency of the "country of the rising sun" in the equilibrium zone of the Minuette operational scale fork, respectively, further development of the USD / JPY movement from October 9, 2019 will be due to the development and direction of the breakdown of boundaries (107.00 - 106.80 - 106.55) of this equilibrium zones. The movement markup is shown in the animated chart.
In case of breakdown of the upper boundary of ISL38.2 (resistance level of 107.00), of the Minuette operational scale fork, then the upward movement USD / JPY will be directed to the boundaries of the 1/2 Median Line Minuette channel (107.55 - 107.72 - 107.90) and the UTL control line (108.15) of the Minuette operational scale fork.
The breakdown of support level 106.55 on the lower boundary of ISL61.8 of the Minuette operational scale fork together with support level of 106.45 will determine the development of the currency of the country of the rising sun inside the 1/2 Median Line channel (106.45 - 105.90 - 105.40) of the Minuette operational scale fork.
The details of the USD / JPY movement, depending on the breakdown direction of the above equilibrium zone, are shown in the animated chart.
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Euro vs Japanese yen
The development of the cross-instrument movement EUR / JPY from October 9, 2019 will continue in the equilibrium zone (117.95 - 117.30 - 116.70) of the Minuette operational scale fork. The markup of this movement is shown in the animated chart..
The breakdown of the lower boundary of ISL61.8 (support level of 116.70) of the Minuette operational scale fork will direct the EUR / JPY movement to the local minimum 115.84 and the boundaries of 1/2 Median Line Minuette channel (115.10 - 114.70 - 114.30).
In case of breakdown of the upper boundary of ISL38.2 (resistance level of 117.95) of the Minuette operational scale fork, the upward movement of this cross-instrument will continue to the boundaries of the 1/2 Median Line channel (118.65 - 119.10 - 119.55) of the Minuette operational scale fork.
The details of the EUR / JPY movement depending on the development of the Minuette equilibrium zone are presented in the animated chart.
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Great Britain pound vs Japanese yen
Meanwhile, the development of the GBP / JPY cross-instrument movement from October 9, 2019 will be determined by the direction of the breakdown of the range :
- resistance level of 130.90 (lower boundary of the ISL61.8 equilibrium zone of the Minuette operational scale fork);
- support level of 129.97 (upper boundary of the 1/2 Median Line channel of the Minuette operational scale fork).
The breakdown of support level of 129.97 will confirm that further movement of the cross-instrument will be developed inside the 1/2 Median Line channel (129.97 - 128.50 - 127.00) and the equilibrium zones (128.75 - 127.00 - 125.40) of the Minuette operational scale fork.
If you return above ISL61.8 Minuette (resistance level of 130.90), the development of the GBP / JPY movement will begin to occur again in the equilibrium zone (130.90 - 131.95 - 133.00) of the Minuette operational scale fork with the prospect of reaching the initial SSL (133.85) and control UTL (134.50) lines of the Minuette operational scale fork.
The movement options, depending on the breakdown direction of the above range, are shown in the animated chart.
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The review is made without taking into account the news background. Thus, 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