Weekly Watch: Dec. 2 – 6, 2013

Weekly Watch: Dec. 2 – 6, 2013

Even with a light calendar, there was no change in behavior last week as trends continued to tear higher. Check out how the markets moved in some of my favorite pairs, and the important levels to watch in EUR/JPY, GBP/JPY, and EUR/GBP!

EUR/JPY

And the Yen selloff continues like clockwork! After rallying almost all of November, is this train running outta steam? We’ll never know for sure until it happens, but the bet is to go with the trend, right?!

For all of you EUR/JPY bulls out there, the bottom WATR (and 61% Fib retracement area) looks like a great area to watch if you’re looking for a retracement. For the more aggressive, a strong break of the PWH might be a signal to start hitting the buy button as well. EUR/JPY bears may want to be cautious for now, with a break below 138.00 as a signal to warm up those sell buttons.

EUR/JPY 1 hour forex chart

EUR/JPY 1 hour forex chart

  • WO: 139.23
  • Top WATR: 140.51
  • Bottom WATR: 137.95
  • PWH: 139.72
  • PWL: 137.01

GBP/JPY

This has probably been the best pair to trade for trend traders as it features one of the strongest currencies as of late–the British Pound–crushing one of the weakest, the Japanese Yen. Since the beginning of November, the pair has been rocketing higher after bottoming out around 157.00, and now trading around 168.40–over 1000 pips higher! I’m currently in this bullish trend, and as bull, I’m watching to see if the area between 167.00 – 168.00 will hold as support. If not, sell orders may start to creep into this market, but probably not convincingly until a break below 166.00 is sustained, just below the bottom of its normal volatility range.

GBP/JPY 1 hour forex chart

GBP/JPY 1 hour forex chart

  • WO: 167.85
  • Top WATR: 169.41
  • Bottom WATR: 166.30
  • PWH: 167.90
  • PWL: 163.67

EUR/GBP

The trend is still in favor of Sterling, but with a week heavy in tier 1 events on the forex calendar, trend traders may be a bit more cautious. A pullback to the top WATR area (.8350) could be attractive to trend traders, while the more aggressive Sterling bulls may see this break of .8300 to go all-in. Euro bulls…where are ya at?

EUR/GBP 1 hour forex chart

EUR/GBP 1 hour forex chart

  • WO: .8293
  • Top WATR: .8348
  • Bottom WATR: .8239
  • PWH: .8392
  • PWL: .8299

 

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