Weekly Watch: Jan. 13 – 17, 2014

EUR/JPY

Big moves from the Japanese yen since last Friday thanks to the U.S. Non-Farm Payrolls surprise weakness.  The broad yen strength off of that report seems to have continued into this week, pushing EUR/JPY to already break the PWL and hit the bottom of its weekly Average True Range.  A sustained move below the PWL may continue to draw in more sellers of the pair, but for all of you longer term traders, you may want to check out this area to possibly hit the buy buttons to hop in the longer-term trend.

EUR/JPY 1 hour forex chart

EUR/JPY 1 hour forex chart

  • WO: 142.16
  • Top WATR: 143.35
  • Bottom WATR: 140.97
  • PWH: 143.16
  • PWL: 141.49

GBP/JPY

Sterling is getting knocked onto its behind early in the week, and with the Japanese yen seeing strength, it hasn’t been a good start to the week for guppy bulls (but a great one for guppy bears!). Just in today’s session, the pair has dropped almost 300 pips from its WO price, now bringing along the question, “legit downside break or an opportunity to buy on the cheap?”

GBP/JPY 1 hour forex chart

GBP/JPY 1 hour forex chart

  • WO: 171.35
  • Top WATR: 172.39
  • Bottom WATR: 169.78
  • PWH: 174.90
  • PWL: 170.41

EUR/GBP

After hitting the bottom WATR level last week, this pair sky rocketed higher to this week’s top WATR.  With the broad GBP weakness, its tough to call this a top and jump in the longer-term down trend, but you can’t ignore this around either.  For momentum players who want to go long, a pullback lower from here to the major psychological area around .8300 is a great looking intra-week buy opportunity if you’re still bearish on sterling by then.

EUR/GBP 1 hour forex chart

EUR/GBP 1 hour forex chart

  • WO: .8297
  • Top WATR: .8347
  • Bottom WATR: .8242
  • PWH: .8332
  • PWL: .8230

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