Forex Weekly Watch: Mar. 31 – Apr. 4, 2014

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

Despite a slight tick up in volatility, EUR/JPY continued its range bound behavior last week as negative deposit rates speculation pushed the euro lower, which was quickly met with buying support from broad yen sellers at 140.00. 142.00 is an area of strong resistance recently, setting up simple breakout or reversal plays, depending on your directional bias.

  • WO: 141.71
  • Top WATR: 142.93
  • Bottom WATR: 140.55
  • PWH: 141.88
  • PWL: 139.37

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

Unlike EUR/JPY above, Guppy was able to break out of its consolidation on positive U.K. data that sparked broad Sterling strength. This could be a signal for momentum traders to jump in, especially given the broad Japanese weakness at the moment.  The case for further upside moves is strong, but look out for potential major resistance around 173.00.  If we see a pullback, 170.00 is definitely the level to watch for potential support.

  • WO: 171.50
  • Top WATR: 173.08
  • Bottom WATR: 169.92
  • PWH: 171.32
  • PWL: 168.14

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

EUR/GBP traders also saw a breakout from a 2-week consolidation period thanks to euro and sterling sentiment catalysts point out above. .8250 has been a very strong support area since the beginning of 2014, so it may be a good idea not to rush into short positions here. But I think a pullback to the top WATR/major psychological area may serve as a magnet for potential sell orders if sentiment remains the same.

  • WO: .8263
  • Top WATR: .8314
  • Bottom WATR: .8213
  • PWH: .8394
  • PWL: .8246

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