By: Doug Rosen
The eurjpy continues to look perfectly bearish. There is absolutely no reason to considering anything but short positions with this pair. This pair is gracefully riding the ema's on all time frames from the weekly all the way down to the 1 minute. At the time I am analyzing this pair I see it is up against the August low of 108.01 with the 4 hour 13 ema just a bit above it and it looks to me it will crunch this pair down below the low.
.jpg "EUR/JPY Daily Chart, September 6, 2011")
The only thing that concerns me is the possibility of a double bottom off this support but I am really doubting it since the downward speed and momentum for this pair is very strong. If anything, we could get a bounce that will take price up just a few pips. A break below the 108.00 level should take it down to 107.92 area which is the weekly S1. At that point I would expect a slight pullback to 108.00 which is where I would enter a short position with a stop loss no higher than 108.20. I would then expect price to smoothly fall down to 107.35 without much interruption before that area. When we hit 107.50 I expect a bounce back up to 107.60 area, at which time I would consider yet another short position with a stop loss not more than 15 - 20 pips to take me all the way down to 106.70 area.
