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EUR/JPY Watch For Breaks Below 104.80

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

I begin my analysis for the EUR/JPY on the daily chart.  As I have said many times before, the EUR/JPY is closely correlated with the EUR/JPY and incidentally, the USD/JPY is very range bound so I expectt he same rules for the EUR/USD will apply to the EUR/JPY.  

 EUR/JPY Daily Analysis, October 20, 2011

Price has once again been rejected by the descending trend line and the daily 5 ema looks as though it wants to cross down below the 13 and 21 ema's and stochastic is in the overbought zone pointing down.  

 EUR/JPY 4hour Analysis, October 20, 2011

On the 4 hour chart I see we are bouncing off last month's high so this will act as support and cause some bounce.  The 4 hour 5 is heading down and will soon catch up to price so I expect price to bounce up just enough to catch up with the 5 ema then most likely continue to fall downward.  

Moving over to the 1 hour chart I can see that price has bounced off the weekly M2 and will soon meet up with he hourly 5 ema then will continue downward.  

 EUR/JPY 1hour Analysis, October 20, 2011

On the 15 minute chart we are making lower highs and lower lows and riding the 13 ema down.  Look to go bearish on this pair and try to catch shorts off the 13 or 5 ema's and try to overlap with fibs and pivots.

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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