By: Doug Rosen
See how this EUR/JPY technical analysis was implemented on a binary actions platform.
I will begin my analysis for the EUR/JPY starting out with the daily time frame and it is very obvious that this pair has been making a series of higher highs and higher lows and is on the move up. This pair begins its day sitting on the upward sloping trend line it has already respected a couple times previously. What I love about price being up against a trend line is that only one of two things can happen, price will either bounce off of it or break through it. This pair has managed to ride above the 5, 13 and 21 ema's and is currently on the 13 ema and the stochastic is in the trade zone and looks like it wants to cross up.
Moving on to the 4 hour chart I see that price is trapped within a price channel and is heading down to the bottom of the channel and as I said about price and trend lines also applies to price channels, only one of two things can happen, it will either bounce off of it or break it but you can always be sure something will happen. At this time, the 4 hour ema's are clumped together and the Bollinger band is rather narrow so there is very little volatility for this pair at this time frame.
Moving on to the hourly time frame price is in a very narrow range and the same applies for the hourly Bollinger bands as it does with the 4 hour, very narrow indicating low volatility and we have clumped together hourly ema's with price sitting on the 233 ema. Price is just above the monthly central pivot point at 106.88 and in between the weekly central pivot at 107.50 and the weekly M2 at 107.13 and on the daily pivots price is bouncing between the daily S1 at 107.19 and the daily M2 at 107.30 and today's central pivot for this pair is at 107.41 and yesterdays low was 107.10 and the high was 107.63. If price breaks below yesterdays low, most likely its falling and if it breaks above the central pivot it should keep heading up with a fight at yesterdays high.
