EUR/JPY - Continues Its Bearish Drop to the Downside

By: Doug Rosen

I start my analysis for this pair looking at the USD/JPY and I see that on the daily chart we have already made a retracement to the daily 55 ema and that the upper Bollinger band was closed and pointing down, this gives a bearish appearance.



Now, since the USD/JPY has been bearish this means JPY strenght and we already know that the USD has been strong against the EUR and CHF and the EUR has been weak compared to the GBP it would be fair to say that the EUR/JPY should maintain itself as bearish.



On the weekly and daily charts price continues to ride the ema's down. Price is below the Monthly, Weekly and Daily Central Pivot Points, bearish indications in itself, and it continues to ride the 5 ema on th 4 hour as well as the hourly charts.



On the 15 minute chart price also continues to be bearish and make its series of lower highs and lower lows. If the USD has been strong and the EUR has been weak then a bearish USD/JPY should naked yet an even stronger EUR/JPY. I maintain my bearish bias on this pair.