By: Doug Rosen
Friday has left us with a bearish EUR/JPY sitting on the Monthly S1 Pivot, the Weekly M1 Pivot and we just poked yesterdays low.
On the Daily chart we have poked outside of the lower Bollinger Band with Stochastics in the oversold zone, yet we are riding the 5 ema down, we have a gap of space in between price and the daily 5 ema.
Due to end of the week profit taking I would expect a move upward at least until we reach the daily five at around 108.16 Also not on the Weekly chart Stochastics is in the over sold and price is right on the lower Bollinger Band.
This pair still looks bearish but profit taking can cause a bounce up. If price were to bounce up I would expect a reaction at 107.65 and consider a short with a stop loss just above 107.87 If price were to break above 107.55 you can also watch for it to travel to 107.86, fall back to 107.65 area then look at taking a long with a stop just below 107.55