EUR/JPY - Q4 2011 Forex Forecast

By: Doug Rosen

This pair continues to look bearish to me. Looking at the monthly chart price is riding the 5 ema after a recent fib from the break of the illustrated trend line. Stochastics has crossed and is sharply pointing straight down within the trade zone and the lower Bollinger Band is pointing downward.



Looking at the weekly chart I see that price has broken previous lows and what could have been depicted as a double bottom. Price is riding down along the 5 ema with the 13 ema standing in when the 5 is pierced.



I can see that price could work meet up with the weekly 5 ema which happens to coincide with the daily 13 ema before continuing its journey downward but beyond that I am long term bearish on this pair and I will continue to be until proven otherwise. I would expect price to continue down to the 100.00 area where it will then run into visible support and pullback to most likely the monthly 5 ema then should continue downward until it double bottoms around 90.00