By: Doug Rosen
The EUR/JPY has a high correlation with the EUR/USD this week which would explain why these two pairs look exactly alike today. Price looks like it should be bearish on the weekly time frame but price needs to rise up and connect with the weekly 5 ema before heading down much further.
On the daily chart price is between the 78.6 and 61.8 fib level of the recent swing up and the stochastics is in the oversold zone and it would appear to me that price needs to rise up further, possibly up to the 55 ema around 106.21.
On the 4 hour time frame price is definitely trapped between support and resistance and looks like it may soon be in a breakout in either direction but most logically to the upside. Price is just below yesterday's high as well as the daily R1 around 104.20 but above the weekly M2 pivot at 103.68 and just below the weekly central pivot at 104.65 and just below the monthly M2 at 104.52.
The weekly central pivot is overlapped by the 1 hour 233 ema but price will have to break above the 144 to get to that level and the monthly M2 is overlapped with the 55 ema. Price action looks very bearish but all my logic points up with this pair today. I will be watching my 4 hour naked chart very carefully to watch for a breakout to the upside.
