Weekly Watch: Feb. 17 – 21, 2014

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

Last week, EUR/JPY stabilized into a tight trading range as shown in the chart above: the high and low of the week are much closer together than the WATR lines. This could mean we could see a break out if we get the right catalyst from the forex calendar, and an opportunity for a momentum trade in either direction if the conditions are just right.

  • WO: 139.41
  • Top WATR: 140.60
  • Bottom WATR: 138.23
  • PWH: 140.30
  • PWL: 138.67

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

It’s been a steady grind high for Guppy since finding a bottom around 164.00 two weeks ago.  I expect more of the same, but if there is a pullback to the 169.00 area (around the bottom WATR level), it’s a great place for the bulls to start paying attention for any buying support.

  • WO: 170.58
  • Top WATR: 172.21
  • Bottom WATR: 168.95
  • PWH: 170.61
  • PWL: 167.19

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

In my Weekly Watch from last week, I pointed out the strong resistance around .8325 as a good area to watch for EUR/GBP bears.  It looks like that was the level to sell, as the pair fell huge on comments from the Bank of England.  The pair is now testing a support area between .8170 – .8180 that looks to be breaking.  A solid break here may bring in more sellers, where the next support area to watch is between .8100 – .8120.

  • WO: .8173
  • Top WATR: .8227
  • Bottom WATR: .8120
  • PWH: .8337
  • PWL: .8180

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  • Jamal Ali

    Can u please tell me the explanation of WO, WATR, PWH, PWL?

    • cyclopip

      Greetings Jamal Ali… those are acronyms are just shortened ways to write Week Open, Weekly Average True Range, Previous Week High, and Previous Week low. It’s a part of our discretionary framework, which you can read more about here: http://bit.ly/1ftVwq1

  • I couldn’t understand your terminologies, the analysis is great tough. I have been trading GBP/JPY for quite some time now, I have pretty good trading history with this pair.

  • cyclopip

    Thanks for your positive comments Aaron! The terminologies are best explained on our page that describes our discretionary trading framework found here: http://bit.ly/1ftVwq1 Hope that helps!