By: Doug Rosen
EUR/JPY began its day just on the 78.6 fib level to the upside based on the daily timeframe.
The 78.6 fib level is the last chance level so if this pair is going to bounce up this is the level that it will otherwise it will just keep dropping, however, I must point out that this pair is highly correlated with the EUR/USD this week and I am bullish on the EUR/USD only because I am bearish on the USD/CHF so if the EUR/JPY is so highly correlated with the EUR/USD then a bounce to the upside will be expected.
Moving on tot he 4 hour timeframe price seems to be bouncing off the 78.6 fib but price still looks bearish because it is still below the ema's and the lower Bollinger band is still pointing down.
On the 1 hour timeframe price made a Doji and bounced off the lower Bollinger band and is heading up but still has the 21 ema to contend with then last week's low overlapped with the 55 ema and let's not forget a fib level to the downside.
On the 15 minute timeframe it is very obvious to me that price has surfaced up above yesterdays low and is beginning to make a series of higher highs and higher lows which could be the beginning of an uptrending day for this pair.