Forex Weekly Watch: Jan. 5 – 9, 2015

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

It looks like bearish euro sentiment went no where during the holiday season, and for EUR/JPY that meant a 300+ dip over the last week.  With a clear bias to the downside, more sellers may hop into the downtrend on a pullback to the week open area to the top WATR/moving averages area around 146.00. But with the market already making new lows and breaking the PWL, momentum sellers could jump in at current levels just below 144.00.

  • WO: 144.46
  • Top WATR: 145.64
  • Bottom WATR: 143.28
  • PWH: 147.21
  • PWL: 144.14

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

Guppy looks more like a ranging market than EUR/JPY, highlighting the weakness in the euro.  For GBP/JPY, I’m sticking with a neutral-bearish bias for now with the Bank of England monetary policy decision this Thursday.  If bearish risk sentiment holds and the BOE doesn’t surprise traders, a retest of the top WATR/moving averages looks like a good area to attract sellers to play the range.  On the long side, I’m going to way for a retest at the major psychological level of 182.00 for buyers to step in as it held nicely as support in December.

  • WO: 184.51
  • Top WATR: 186.19
  • Bottom WATR: 182.84
  • PWH: 187.79
  • PWL: 184.35

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

EUR/GBP is on the same train to Downtrendsville and with the market testing the down sloping moving averages, current levels may be a good time to take a short with a wide stop well above the .7900 handle.  Again, the Bank of England’s Monetary Policy Committee is meeting this week, which means technicals can be thrown out the window with any surprise commentary on the future of England’s monetary policy.  I may just wait until we get the event, with eyes on the .7900 area to short if it does get retest and holds.

  • WO: .7830
  • Top WATR: .7881
  • Bottom WATR: .7779
  • PWH: .7853
  • PWL: .7745

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