Forex Weekly Watch: Apr. 7 – 11, 2014

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

Last week, EUR/JPY broke above recent resistance around 142.00, topping out its move just under 143.50 before reversing on broad risk aversion sentiment in reaction to last week’s ECB meeting.  This week, it looks like we’ll get more risk-off moves in favor of the Japanese Yen, but if we see a bounce higher, 142.50 – 143.00 may be closely watched as a selling opportunity.  140.00 will definitely be an area to watch for buy orders as the major psychological level lines up with the bottom of its weekly volatility range.

  • WO: 141.41
  • Top WATR: 142.58
  • Bottom WATR: 140.24
  • PWH: 143.48
  • PWL: 141.31

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

In last week’s Weekly Watch, I mentioned that the argument was for a move higher after the consolidation break.  Well, it looks like that’s what we got with Guppy popping higher to retest March high’s around 173.00.  The forex calendar does have major events for both currencies, but I’m watching out for a retest of 170.00 as an opportunity to play this pair in line with the higher timeframe trendline spotted by Big Pippin.

  • WO: 171.15
  • Top WATR: 172.67
  • Bottom WATR: 169.63
  • PWH: 173.15
  • PWL: 170.98

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

For EUR/GBP, last week I thought that .8300 would draw in enough sell orders to hold the area and maintain the trend lower.  It looks like that it was the line in the sand that held, but after going into consolidation mode, it’s now the area to watch for a break.  On the downside, the previous week low (basically at .8250) is the level to watch.  A break there may signal momentum traders to jump in, most likely going for the bottom WATR area and next major psychological level of .8200.

  • WO: .8263
  • Top WATR: .8312
  • Bottom WATR: .8215
  • PWH: .8314
  • PWL: .8249

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