By: Doug Rosen
The EUR/JPY looks incredibly bearish to me. With this pair I could not consider anything but a bearish bias. On the weekly time frame price is riding below the ema's very smoothly and the lower Bollinger band wants to cross down.
On the daily time frame price recently has a 5 ema crossover below the 13 and 21, the lower Bollinger band is beginning to open and point down a bit and the stochastics is pointing downward. Additionally, price has begun to break a lower trend line.
At the time I am writing this analysis price has been fighting with the 104.74 level which has been respected several times in the past and the monthly M2 pivot is just below that at 104.55 Moving on to the 4 hour time frame price is riding the 5 ema downward and the lower Bollinger band is open and pointing down. Once price breaks below the monthly M2 at 104.55 I think we be in for a nice drop.
The weekly S1 is also at 104.48 On the hourly time frame I can also see that the 104.72 level is last week's low and that definitely has much to do with the pressure at that zone. Stochastics is at the bottom of the oversold zone pointing straight down. Price has however broken yesterday's low at 104.75 and the lower Bollinger band is wide open and sharply pointing down as is the 5 ema. The next daily pivot point to deal with when price drops will be the daily A1 at 104.30.
