By: Doug Rosen
I will start with the daily chart for the EUR/JPY to begin my analysis today. I hate repeating myself too much but in the event you haven't read my analysis on the other pairs I cover I have been stating that today and in just a few hours the Non-Farm Payroll report will be released and it is the last report of the year and just around the Holiday Season, in anticipation of the report not much trading will take place. Also, this past week there has been much price action going on and the market needs a little time to breathe and digest a bit before moving on. Price however, does look bullish, price is just above the 21 ema and the 5 ema is beginning to cross above the 13 ema and stochastics is pointing up. I also want to point out that it does appear that a Head and Shoulders pattern may be forming and I will watch that very carefully.
On the 4 hour time frame price has already touched and was rejected off the 233 ema which was overlapped with the monthly central pivot point at 105.20
On the hourly time frame the 5, 13 and 21 ema's are very close to each other, a sign of low volatility and price has been making a series of higher highs and higher lows but on the most previous swing has made a lower high.
On the 15 minute time frame ema's are bunched together and the candles are very small. In the past hour price has only moved about 8 pips and in the last 15 minutes only a 4 pip range so nothing much happening these few hours before the NFP report. While trading this pair keep an eye on the stock market and of course Gold. When the NFP is released try to fade price action from extreme pivot levels.