Forex Weekly Watch: Dec. 1 – 5, 2014

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

Despite a return to calmness after a strong Japanese yen sell off over the past few weeks, the yen weakness seems to still be intact. With the market still firmly above the moving averages, it makes sense to keep long opportunities in mind, especially if we do see a return to the moving averages around the bottom WATR area. There is a potential major resistance area around the 150.00 handle to watch out for if the previous swing high and top WATR level doesn’t draw in sellers.

  • WO: 147.98
  • Top WATR: 149.20
  • Bottom WATR: 146.76
  • PWH: 147.97
  • PWL: 145.58

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

Much like it’s cousin above, GBP/JPY’s uptrend still seems to be intact, but with a powerful bullish chart pattern in the works. On the one hour chart above, we can see strong resistance around the 186.00 area and rising lows along the moving averages to form a rising wedge or triangle, signaling a potential breakout is in the works.

I’ll be looking for a strong break above the 186.00 level for a potential long play, and as a backup, a pullback to the bottom WATR area as a potential buy area if it does draw support.

  • WO: 185.71
  • Top WATR: 187.35
  • Bottom WATR: 184.08
  • PWH: 186.12
  • PWL: 184.06

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

I think choppiness may be the name of the game for EUR/GBP this week, especially with potentially heavy hitting central bank events in this week’s forex calendar. Forex traders may stay away from establishing strong directional positions for that reason, so the bottom WATR area is certainly a strong buy candidate having been a previous support area as well as a major psychological level.

I wouldn’t be surprised if the top WATR held well as resistance being that it is a major psychological level and the November highs, and can’t forget to mention that the pair has been in a longer-term down trend.

  • WO: .7966
  • Top WATR: .8016
  • Bottom WATR: .7917
  • PWH: .7971
  • PWL: .7896

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