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EUR/JPY Reaching Fib Levels

By Doug Rosen
Doug Rosen is a Florida-based Forex trader who became a skilled technical trader through 3 years of intense practice and self-teaching. He now coaches a live trading room and analyzes the market on forextradeplans.com.

By: Doug Rosen

This pair is giving me mixed signals. The JPY just took a major dive and on the weekly chart we are at a perfect 50.0 fib of the previous swing down overlapped with the 55 ema, however, on the daily chart we have busted through a trend line, however, we just touched the 233 ema and the stochastic is in the overbought zone. What this is really telling me is that price will most likely retrace down a ways before it continues its move to the upside. We will need to see how this pair plays out.

EUR/JPY Weekly Chart 10/31/11

 

EUR/JPY Daily Chart 10/31/11

Moving on to the 4 hour monthly pivot chart price is way beyond the R3 and price is extended way outside of the Bollinger band with a stochastic in the overbought zone.

EUR/JPY 4 Hour Chart 10/31/11

Moving on to the hourly weekly pivot chart price has just touched the M5 pivot and edge of the upper Bollinger band with a stochastic on the overbought zone.

EUR/JPY 1 Hour Chart 10/31/11

Finally, on the 15 minute daily pivot chart we have broken all resistance pivot levels and I expect price to retrace down a bit before it continues onward or price could just reverse from here.

Doug Rosen
About Doug Rosen
Doug Rosen is a Florida-based Forex trader who became a skilled technical trader through 3 years of intense practice and self-teaching. He now coaches a live trading room and analyzes the market on forextradeplans.com.
 

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