By: Doug Rosen
The EUR/JPY has been dropping all week and considering how weak the EUR is as of lately and the fact the JPY seems to be stronger than the USD, I can't think anything but bearish for this pair.
This week this pair is closely correlated with the EUR/USD and has also been riding the 5 ema downside. As with any instrument, traders want to get the best deal they can get so will probably wait for this pair to move up a bit to the daily 5 ema around 104.50 to enter their shorts. The 104.50 level also coincides with the 4 hour 21 ema as well as the monthly M2 and the weekly S1 pivot points.
On the 1 hour chart timeframe the 55 ema has proven to be strong resistance and the hourly 55 ema stands at around 104.17 with an upper Bollinger band just above the 55. There is a slight chance that this 55 ema could act as strong resistance and stop price from going any higher so I would keep an eye at that level.
On the 15 minute timeframe the 233 ema is also a around 104.20 with the daily R1 at 104.26 and yesterdays high at around 104.37 The 15 minute stochastics is in the overbought zone and price keeps touching the upper Bollinger band. More than likely, price should turn around and start to drop between 104.20 - 104.50 .
