By: Doug Rosen
The EUR/JPY new weekly candle begins 130 pips below the weekly 5 ema as well as the stochatics in the oversold zone and this is also the case with the EUR/USD and these two pairs are very closely correlated today. So if the EUR/USD retraces to the upside then most likely the EUR/JPY will do the same.
On the daily timeframe price is bouncing off what looks like a double bottom at 100.90 The stochastics is also in the oversold zone.
On the 4 hour timeframe I have price in a trap. Price has made a couple higher lows bot also lower highs and the 21 ema is not far above. If price breaks 101.80 I will watch for longs and below 101.05 I will be watching for shorts.
On the hourly timeframe price is in a tight range and the ema's are bundled up but we have seen obvious higher lows. Its been a very bearish market so when retracements to the upside take place there will always be sellers at every level above. Finally, on the 15 minute timeframe price is in a range and we will have to see if it breaks 101.80 to head up or 101.10 and keep tanking.
