By: Doug Rosen
The EUR/JPY has recently made a 50.0 fib to the down side overlapped with a 55 ema on the weekly time frame and at this time the weekly candle is just below the 21 ema.
Observing the daily chart the 5 ema appears to be rolling over to the downside and daily price action is below the 21. Yesterday this pair made a lower high and a lower low and the upper Bollinger band is closed. The stochastics is in the trade zone pointing down.
Moving on to the 4 hour chart we are beginning to have a 5 ema cross below the 13 ema, however, the 55 ema is just below price. The 55 has been wicked but it has not been breached. If breached I expect price to continue down to 106.88 which is the monthly central pivot point which is overlapped with the lower Bollinger band. Momentum and speed will have to increase for price to break this level, otherwise, this will be a good level for buyers to enter.
Moving on to the hourly chart price is below the 5 ema and riding it down. The 233 ema exists at 107.18 and the weekly M2 is at 107.13 and is overlapped with the lower Bollinger band which incidentally is closed and pointing up. There is no doubt profit taking and buy action will occur within that price zone between 107.20 and 106.90. Taking a look at the daily pivot points in this zone the daily M2 is at 107.17 and the daily S1 is at 106.86, just two pips above yesterdays low.
Finally, a quick peek at the 15 minute time frame price is still dropping a bit but the ema's are clumped together indicating low volatility so I would surely expect price to have a bullish reaction if any at the price levels I just mentioned.