Forex Weekly Watch: Feb. 16 – 20, 2015

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

It looks like the tide has turned for Japanese yen pairs, including EUR/JPY which has broken strong resistance around 135.00. Barring any major surprises this week, I suspect that major psychological level will now be seen as support, possibly with the help of the moving averages drawing in dynamic support traders. If 135.00 breaks, it’s still a bullish looking chart until the bottom WATR/PWL area is broken, around 133.50.

  • WO: 134.95
  • Top WATR: 136.50
  • Bottom WATR: 133.41
  • PWH: 136.69
  • PWL: 133.68

GBP/JPY

 GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

The uptrend is Guppy is much stronger than its cousin EUR/JPY above thanks to the combination of broad weakness in the Japanese yen and broad strength in the British pound in recent sessions. The pair may continue its pullback after testing the 184.00 handle, maybe as deep as the 200ma and previous week low/bottom WATR area before drawing interest from buyers. If that area is tested and breaks, it could easily draw in momentum players with the right economic or news catalyst and push the pair to the swing low around 176.00

  • WO: 182.41
  • Top WATR: 184.28
  • Bottom WATR: 180.55
  • PWH: 184.18
  • PWL: 180.17

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

EUR/GBP is back on its longer-term downtrend, although last week was a slow grind lower. With the trend still intact, any print between .7400 – .7450 is potential sell area, maybe even all the way up to the .7500 handle.  And given recent pound strength, I’m also watching for that previous week low to break as a potential easy trade setup to jump in this long-term trend lower.

  • WO: .7397
  • Top WATR: .7458
  • Bottom WATR: .7336
  • PWH: .7459
  • PWL: .7373

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