By: Doug Rosen
No ifs, ands or buts about it, this pair maintains its heavy bearish appearance. I would not consider any longs with this pair. It may retrace a bit to connect with the daily 5 ema but I would just sit back and wait for that to happen. More than likely, price will stay put for a bot and just pull the 5 ema down to it.
.gif "EUR/JPY Daily Chart")
Switching over to the 4 hour chart I see price continues to ride the 5 ema downward and the lower Bollinger Band is wide open pointing down. We have strong angle and separation between the ema's so speed is fast and momentum is strong. Price has broken the monthly S2 pivot.
Moving over to the Hourly chart, same story, price is riding the 5 ema and has just broken the weekly S1. Next fight area will be 103.88 which was last week's low and 103.95 was yesterdays low. Watch for a bounce in this area since it could be viewed as a double bottom.
Looking at the 15 minute chart we continue to have lower lows and lower highs. If price was to bounce up around the 103.90 region I would simply wait for it to rise to a reasonable pull back area such as 104.30 then expect it to continue to the downside.
See how this market analysis translated into profitable trades here.