By: Doug Rosen
This pair continues to look almost identical to the EUR/USD. Just glancing at the USD/JPY I see it is very range bound which explains the close correlation between the EUR/USD and EUR/JPY. Skipping the weekly chart because it doesn't tell me anything I don't already know and going straight to the daily chart, just like the EUR/USD we are breaking a descending trend line and the 5 ema is prepping to cross above the 13 ema and the stochastics has crossed out of the oversold zone and is pointing up.
Looks like a breakout could be in the works. At the time I am writing this analysis price has poked through the monthly central pivot point as well as the weekly M3 and has pulled back near the 5 ema and seems to be heading back up. Moving on to the hourly chart I see price has been riding the 5 ema and the stochastics is pointing up. The hourly 5 ema has crossed above the 13 and 21 ema's and price continues to ride the hourly 5 ema gracefully to the upside. As I look at the 15 minute chart I see that price has been riding up the 21 ema and is already above Fridays high. Just as I am bullish on the EUR/USD today, I am equally bullish on the EUR/JPY and am only looking for reason to buy this pair.
