Forex Weekly Watch: July 7 – 11, 2014

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

Another choppy week for EUR/JPY, which is almost expected as the BOJ and ECB are the two major central banks who are expected to keep running their easy money policies for quite some time.  With a forex calendar mostly lacking of major tier one events for both currencies, the sideways action may continue.  For me, I’m going to watch for a return to the bottom of the range (around PWL and bottom WATR) before considering a play on this pair.

  • WO: 138.69
  • Top WATR: 139.51
  • Bottom WATR: 137.87
  • PWH: 138.28
  • PWL: 138.10

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

It was big breakout for Sterling last week, and with any new momentum, it’s a new opportunity to jump in a potential new trend.  The pair topped out its move around the major psychological handle at 175.00, so it wouldn’t be out of the realm of possibility to see a profit taking pullback from here.  If we do see the pullback, the first areas to watch are the 38% Fibonacci and then the 50% Fib/bottom WATR level.  It wouldn’t be crazy to short at these levels, but it’s high risk you’d be caught in a “melt up” higher from here.

  • WO: 175.08
  • Top WATR: 176.20
  • Bottom WATR: 173.97
  • PWH: 175.37
  • PWL: 172.38

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

EUR/GBP is also benefitting from the big spike in Sterling, so the general play of the week is to see if we’ll get a pullback to jump in the long-term trend lower.  The top WATR level is lining up with the falling moving averages, so that’s the area I’ll be keeping an eye out for in case a pullback does form. Of course, a breakout lower is not out of the question, so keep an eye on that for a potential move to the next major psychological level.

  • WO: .7924
  • Top WATR: .7965
  • Bottom WATR: .7883
  • PWH: .8028
  • PWL: .7919

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