By: Doug Rosen
The EUR/JPY didn't make much headway yesterday. The total range for yesterday was only 25 pips. On the weekly timeframe price is still below the weekly 5 ema and still has not made contact with it this week and I doubt it will this week since thee is no true driving force in the market this week. The weekly stochastics is in the oversold zone so it is plausible for price to start heading back up to make contact with the weekly 5 ema so that it can continue its way down.
On the daily timeframe price is floating on the 5 ema but floating and not riding. Daily stochastics is also in the oversold zone.
On the 4 hour timeframe price has drifted out of the triangle trap it was in but this was not a breakout, it was just a drift out. Price tends to drift during times of low volatility such as international holidays and the like. So price is just below the 5 ema and just above the lower Bollinger band and the ema's are all bunched together and the 4 hour timeframe is not showing me too much action.
On the hourly timeframe each of the candles have long wicks. This can be very dangerous trading conditions to trade under since long wicks are a sign of unsureness and if you enter a short and price falls and your timing was accurate you can still get stopped out at breakeven or with a small loss even if you were in a decent profit.
If you are a scalper and looking to cop on 7 - 10 pip scalps these type of trading conditions may be adequate, but if you are a swing trader this type of market movement can be very frustrating. Meanwhile, price is managing to stay beneath the ema's on the hourly timeframe and if I was to look for scalps I would be looking to take shorts off fibs overlapped with meaningful ema's such as the 21 or 55.
