Weekly Watch: Jan. 6 – 10, 2014

EUR/JPY

Big moves for the Japanese yen across the majors as the new year opened up with pullbacks in the yen crosses. EUR/JPY is no exception, and now it’s currently testing the consolidation area around 142.00 from two weeks ago. Now that it’s consolidating once again, this looks like a potential breakout play in the works. Since the longer-term trend is higher, watch out for a break above 142.50. Strong support at the bottom WATR level is also worth a closer look.

EUR/JPY 1 hour forex chart

EUR/JPY 1 hour forex chart

  • WO: 142.50
  • Top WATR: 143.68
  • Bottom WATR: 141.32
  • PWH: 145.15/strong>
  • PWL: 141.96

GBP/JPY

This one hour forex chart of GBP/JPY is very similar to EUR/JPY above, which means we may be seeing another longer-term chance to sell some yen. Stay on your toes because this pair does move fast and we may not have to wait long to see another retest-and-support of the bottom WATR level.  A break of 172.00 to the upside is definitely worth a look with great R:R potential.

GBP/JPY 1 hour forex chart

GBP/JPY 1 hour forex chart

  • WO: 171.89
  • Top WATR: 173.42
  • Bottom WATR: 170.37
  • PWH: 174.90
  • PWL: 171.05

EUR/GBP

The longer-term trend in favor of sterling made another leg down last week after breaking the holiday consolidation. We’re currently seeing a pullback higher, creating an opportunity for pound bulls to get in this pair at a much better price than last week. Watch the top WATR area for potential selling, which may be likely as it lines up with a strong broken support area around .8350.

EUR/GBP 1 hour forex chart

EUR/GBP 1 hour forex chart

  • WO: .8291
  • Top WATR: .8340
  • Bottom WATR: .8242
  • PWH: .8374
  • PWL: .8270

Risk Disclosure
Q4 2013 Trading Performance Review
Read about my trading framework
Follow me on MeetPips.com
Follow me on Twitter
Like my Facebook page

  • Brilliantier

    Love the analysis here! Great info 🙂
    – Mr. Brilliantier