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EUR/JPY Bearish Continuation Expected

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 will start my analysis for EUR/JPY pair with the weekly time frame.  I do not think this pair is done dropping just yet, it looks like it has already begun to breach support that has been respected in the past.

 EUR/JPY Weekly Analysis, November 10, 2011

Moving on to the daily time frame I can see that the 5 ema has crossed below the 13, 21 and 55 ema's and is pointing down and stochastics is pointing down as well. The lower Bollinger band has opened and is pointing down, however, I brief retracement could take place before bullish continuation occurs.

 EUR/JPY Daily Analysis, November 10, 2011

Moving on to the 4 hour time frame price is riding down along the 5 ema and the lower Bollinger band is open and pointing down as well as the 13 ema crossing below the 144 and 233 ema, a very bearish indication.

 EUR/JPY 4hour Analysis, November 10, 2011

Moving on to the hourly chart, price has also been riding the 5 ema down and the angle and separation between the ema's is strong indicating high speed and strong momentum.

 EUR/JPY 1hour Analysis, November 10, 2011

Finally, onto the 15 minute time frame we can see price has been very gracefully riding the 21 ema.  Price is trying to break the weekly S3 at 105.08 but the monthly M2 is at 104.55 and the daily S1 at 104.54 overlap each other so a decent bounce should occur at that level giving some traders a quick scalp long but most important, an entry for a short.
 

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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