By: Doug Rosen
Just as with many other pairs the EUR/JPY took a heavy dive yesterday and as it did the day before which has extended the weekly candle very far from the ema so early in the week.
This also seems to be the case for the daily time frame as well. On both time frames stochastics is in the oversold zone. Current price action is around 101.65 but what I am sure will be a very strong area of support that will push price back up is at 100.90 I not sure if it will hold but will most definitely cause a reaction and keep in mind this is a weekly time frame I am talking about.
On the 4 hour time frame price is also a bit of a ways from the 5 ema and consolidating probably giving price a chance to catch up then will most likely continuing to dive down. I would also like to point out that the 4 hour 5 ema is beginning to cross down below the monthly S1 pivot point.
On the hourly time frame the 21 ema has just crossed down below the S2 pivot point as well. These are all very bearish conditions and with the exception of some necessary pullbacks, I still expect this pair to continue dropping.
Finally, on the 15 minute time frame price continues to ride down mostly the 144 and 55 ema's. Price is in a range just above yesterday's low but the 55 ema has come down pushing price to the downside. A break below yesterday's low at 10.46 will confirm this pair has further down to go.