Weekly Watch: Feb. 10 – 14, 2014

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

We’re finally seeing a big pull back on the strong downtrend in EUR/JPY, which to me could be another selling opportunity for the bears out there.  It’s current price is just above the 61% Fib retracement level and an area of previous, broken support.  If it does pop higher on some short-term noise and not a change to the story, 140.00 – 140.35 area could be another resistance area.

  • WO: 139.60
  • Top WATR: 140.38
  • Bottom WATR: 138.37
  • PWH: 139.51
  • PWL: 136.22

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

Much like its cousin market above, GBP/JPY’s price action is in another similar down trending and retracement pattern. It’s currently testing last week’s highs, which lines up with the support area from the week before and major psychological level of 168.00. Stochastic is showing oversold conditions, which makes this an interesting level to watch for this week.

  • WO: 168.18
  • Top WATR: 169.83
  • Bottom WATR: 166.54
  • PWH: 168.22
  • PWL: 163.88

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

To me, it looks like EUR/GBP has transitioned from a downtrending market to a range bound market since the beginning of 2014.  The market is currently at the top of its 2014 range, the area just below .8350, with resistance looking strong still; last week we see strong selling around the .8325 area.  Sterling bulls may want to take a close look at this area for a high R:R setup, especially if it gets close to the top WATR/PWH levels.

  • WO: .8303
  • Top WATR: .8354
  • Bottom WATR: .8252
  • PWH: .8350
  • PWL: .8187

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