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EUR/JPY Trapped in the Center of a Range

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

See how this EUR/JPY technical analysis was implemented on a binary actions platform.

Starting with the daily chart for this pair we seem to be in a range. We are up against the descending trend line and price seems to be slowly rolling over.

EUR/JPY Daily Chart 10/26/11

Moving on to the 4 hour chart which is my monthly pivot chart the range we are caught in is more obvious and we are in the center of this range. Price is just above the monthly M4 pivot at 105.60 and the R2 is at 106.38. Further confirmation of the range bound conditions this pair is in is the narrow Bollinger bands price is caught in between.

EUR/JPY 4 Hour Chart 10/26/11

On the hourly chart also my weekly pivot chart price is below the central pivot located at 106.04 and besides that there is no real direction for this pair other than sideways. The ema's are all clumped and braided together, a sign of very little or no volatility.

EUR/JPY 1 Hour Chart 10/26/11

Finally, I look at the 15 minute chart as well as my daily pivot chart and price is hovering right on the central pivot which overlaps with a 50.0 fib level of yesterdays range. Price is in the very center of the range and not near support or resistance at this time. The next area of support is the daily M2 at 105.53 and the next area of resistance is at the M3 at 106.05 so watch for reactions when price reaches those said areas.

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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