EUR/JPY Has Retraced Down to Support

Doug Rosen

By: Doug Rosen

I will start this pair briefly with the weekly chart. Yesterday's price took off to the upside and abruptly fell precisely at the 50.0 fib level that was precisely overlapped with the 55 ema. That same price level had been resistance a couple months ago so a drop was expected at that level. Now price has headed all the way back down almost from where it had started and is close to support. The weekly 5 ema is heading up as is the stochastics and a cross of the 5 above the 13 looks probable.

EUR/JPY Weekly Chart 11/1/11

Moving over to the daily chart price has reached the 5 ema and has had a slight bounce. Daily price just may be trying to catch a ride up the 5 ema.

EUR/JPY Daily 11/1/11

Moving on to the 4 hour monthly pivot chart price is at notable fib levels both swing and move fibs and price has landed on the 21 ema and has reacted just a bit. Stochastics is pointing down but heading into the oversold zone and the lower Bollinger band is pointing up. The 55 ema is rising and making contact with the central pivot at 106.88 and will cross above it.

EUR/JPY 4 Hour Chart 11/1/11

Moving on to the hourly weekly pivot chart price has touched the M3 at 107.68 and has bounced just a bit. Price is also riding down along the 5 ema and touching the lower Bollinger band which is pointing down, however, we do have a stochastic in the oversold zone. I do expect price to continue to head down just a bit more to the 106.80 zone.

EUR/JPY 1 Hour Chart 11/1/11

Finally, onto the 15 minute daily pivot chart price has touched the M2 and bounced just a tad bit but the 5 ema seems to be in control taking price down further. I can see that price could continue to drift down until it reached the 106.99 area which is yesterdays low and a psychological level then I would expect some bullish reaction.

Doug Rosen
Doug Rosen is a Florida-based Forex trader who became a skilled technical trader through 3 years of intense practice and self-teaching. He now coaches a live trading room and analyzes the market on forextradeplans.com.

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