EUR/JPY Looks Like It's Heading Down

Doug Rosen

By: Doug Rosen

Beginning my analysis for the EUR/JPY briefly on the weekly timeframe I can see that price has made its way back up and has touched the weekly 5 ema then retreated. A brief look at the EUR/USD displays USD strength and a look at the USD/JPY displays USD weakness so my bias on this pair for today would have to be bearish.

EUR/JPY Daily Chart - November 29, 2011

Looking at the daily timeframe price has just nearly touched the 21 ema and has made a swing fib overlapping with the daily 21 ema, a bearish sign for sure. On the 4 hour timeframe price is just below the 144 ema as well as the monthly M2 at 104.52.

EUR/JPY 4 Hour Chart - November 29, 2011

Moving on to the hourly timeframe price made a lower high and has bounced off last week's high and appears to be heading down. Price could just bounce off the 21 ema to the upside when it gets down to the 21 ema but a pierce below it then a retest may be the beginning of bearish action for this pair.

EUR/JPY 1 Hour Chart - November 29, 2011

Finally, on the 15 minute timeframe price is already below the ema's and just now bouncing off the 55 ema to the upside only to come into contact with the 5, 13 and 21 ema's overlapped with the daily M3 pivot point. If price was to continue up then I would watch for a break above 104.51 then a retest then watch for longs, or I would watch for price to fall from where it is at and continue falling all day.

EUR/JPY 15 minute chart - November 29, 2011

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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