By: Doug Rosen
The EUR/JPY still keeps looking almost exactly like the EUR/USD but then this is expected since lately it has had close correlation with the EUR/USD and today both pairs are very closely correlated. Yesterday's rally up pushed the weekly candle up quite a bit getting it closer to the weekly 5 ema. Doesn't have too much further to rise to make contact and the stochastic is in the oversold zone so a further rise up is likely.
On the daily time frame price is heading up, it recently nearly made a double bottom at 100.80 then started to drift up and has moved above a trend line it was previously under and now above it. Just like with the EUR/USD the daily 5 ema has rolled over to the upside and is just under the daily candle boosting it up but the 13 ema is not too much further above and not too much further above that is the daily 21 ema overlapped with the 38.2 fib of the last swing down at 102.82 which overlaps with the weekly 5 ema so we have chance to gleam 100 pips to the upside before price hits tough resistance and heads back down. All the same with the EUR/USD.
On the 4 hour time frame it is obvious that yesterday price broke out of the range trap I had it in and has already retested that area and is now heading up. The 4 hour 55 ema is just below price pushing it up but price is going up to the 55 ema around 102.17 but with an upper Bollinger band open and pointing up and the 5 ema pushing price up I expect price to break through the 55 ema. Not too much further above that is last month's low at 102.48 and this area will also put up a fight.
On the hourly time frame price is heading up but twice touched 102.18 and both times was rejected and a break above 102.20 will confirm bullish price action. Around that same price zone is also the hourly 233 ema to add to the fight. On the hourly time frame price is still above all the other ema's and with all that energy below price resistance can be broken.
On the 15 minute time frame price looks very bullish and is riding above the ema's as well. Yesterday's high awaits at 102.17 so as I said, a clean break above 102.20 then a retest should send price up.
