EUR/JPY - Breaking Its Price Trap

By: Doug Rosen

This pair continues to maintain its bearish downtrend and is still riding the 5 ema down on the daily chart.



Moving over to the 4 hour chart the 21 ema was in control then passed control over to the 13 ema and price is not below the 5 ema as well.



Looking at the 1 hour chart it appears we have broken the lower trend line and price could be escaping from its trap. The lower Bollinger Band has opened and is pointing downward giving price permission to fall.



Price is below the daily central pivot and the 15 minute 5 ema's have crossed below the daily central pivot. There is so much dynamic resistance between the central pivot and price I don't see that this pair has anywhere to go today but down. Price seems to be struggling as I write this analysis at the 104.35 level which just happens to be the daily M2. I am expecting price to retrace a bit to make contact with the 5 ema then i expect it to dive, breaking the M2 then heading down to the S1 where there will most likely be a fight