By: Doug Rosen
The EUR/JPY opens its new weekly candle just below the weekly 5 ema but far enough below that I think price will need to drift up a bit to it then continue its way down. The weekly 5 ema is at 102.51, the daily 21 ema is at 102.65 and the 38.2 fib of the recent swing down is at 102.82
With all that being said I believe it is quite plausible for price to make its way up to somewhere in between 102.50 - 102.80 in order to continue its way downward.
On the 4 hour timeframe price is looking vey thin and unsure of itself since the ema's are braiding with each other, however, price is above visual support which bolsters my opinion that price needs to head up a bit before it will head back down.
On the hourly timeframe the 5 and 13 ema's are very close to each other and the 21 ema is also very close. Price is ranging between 101.75 and 101.90 so the range is too tight to even range trade so far today. The Christmas holiday as well as today being a Bank Holiday I don't expect much volatility for this pair and since it is moved mostly by the Stock Market I don't expect any moved today.
In the past 4 hours this pair has only move about 14 pips. I will remind you all once again until you are all used to it that I have provided a table of levels for you all to monitor. We will called it Doug's Matrix since it is of my own design and my name is Doug. It is simply a table that displays every pivot point from the monthly all the way down to the 15 minute, however, by the time you view it the 15 minute and hourly data will already be expired but I do recommend keeping an eye on all the other levels. In addition to the Pivot Point levels I have provided the Fib retracements and extensions of the previous candles also over the monthly to 15 minute timeframes but the same thing applies, pay attention mostly to the monthly to the 4 hour since the hourly and 15 minute will be expired. The 4 hour pivot and fib levels are good until 10:00 AM GMT. The levels indicated in Doug's Matrix will keep you out of danger and put you into profitable opportunities.
