Weekly Watch: Jan. 20 – 24, 2014

EUR/JPY

We saw a good amount of volatility in EUR/JPY last week with around 600 pips of directional movement, but it looks like it’s an even battle between long-term buyers and sellers at the moment.  Even this week, 140.50 seems to be a new line in the sand for the bulls, while 143.00 has been seller territory for now.  A retest and hold of 142.00 might be the simple range play of the week, but from the bull side, it looks like a double bottom forming at 140.50.

EUR/JPY 1 hour forex chart

EUR/JPY 1 hour forex chart

  • WO: 140.89
  • Top WATR: 142.04
  • Bottom WATR: 139.75
  • PWH: 142.91
  • PWL: 140.49

GBP/JPY

After a strong downside move then reversal back up, Guppy is now trading in tight range between 170.50 to just under 172.00.  This has the makings of a consolidation breakout setup, and based on what’s coming up on the forex calendar, that just might be what we get.

GBP/JPY 1 hour forex chart

GBP/JPY 1 hour forex chart

  • WO: 170.81
  • Top WATR: 172.33
  • Bottom WATR: 169.29
  • PWH: 171.88
  • PWL: 168.35

EUR/GBP

After catching a nice downside move thanks to U.K. retail sales, EUR/GBP is back to a strong support area around .8230 (also held as support Dec. 2, 2013).  The pair is still in a longer-term downtrend, so this next retest just might be the straw that breaks the camels back to bring the pair down to levels last seen at the end of 2012.  A pullback to top WATR is also a pretty good looking setup to hit that downtrend at slightly better prices than we’re currently seeing.

EUR/GBP 1 hour forex chart

EUR/GBP 1 hour forex chart

  • WO: .8248
  • Top WATR: .8296
  • Bottom WATR: .8200
  • PWH: .8349
  • PWL: .8233

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  • Darthfrancis

    hey dude, on the GBPJPY a nice bullish pin bar has formed on the S/R line of 171.000ish on the weekly chart in line with the current bullish trend.

    I think we may see this pair hitting 178.000 in the current months maybe 180.00 who knows.

    Darth

    • cyclopip

      Yeah, I’m watching GBP/JPY for another bull move higher, but 172.00 looks like it’ll be tough to breach until we get a new catalyst. If it does, I’m with ya on that 178.00 target.