Forex Weekly Watch: Mar. 9 – 13, 2015

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

Last week, the bearish bias went from a slow grind to an accelerated move lower in EUR/JPY thanks to last week’s ECB meeting confirming the arrival of quantitative easing.  With a strong fundamental driver in play, it’s hard to see nothing but more weakness from the euro, but it’s not out of the question for a little pullback higher with the stochastic indicator showing potentially oversold conditions.

There will probably be sellers anywhere from the current area around 131.00 and higher, but I’ll be setting my orders to seller between the top WATR area and the falling moving averages, where there is a higher probability of sell orders being placed.

  • WO: 130.91
  • Top WATR: 132.40
  • Bottom WATR: 129.43
  • PWH: 135.85
  • PWL: 130.93

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

Since finding strong resistance just under the major psychological area of 185.00, GBP/JPY has slowly pulled back but still remains in the longer-term uptrend in my opinion. Without a major catalyst in this week’s forex calendar that I can see, I think this pair is likely to move in a sideways manor, prompting me to look at reversal plays at the top and bottom WATR areas.

Because of the longer-term trend higher and the major psychological level of 180.00, I think that’s the place for me to jump in with a big position, while a retest of the top WATR/moving averages makes sense for a shorter-term, swing trade opportunity.

  • WO: 181.78
  • Top WATR: 183.50
  • Bottom WATR: 180.07
  • PWH: 184.93
  • PWL: 181.51

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

EUR/GBP continues to be a one-way train to the downside with no rest stops in sight.  The retracements have been very shallow over the past few weeks and will likely continue to behave such a manner, unless we get some bearish data from the U.K. this week.

Shorting at market with a small position and wide stop is how I’m looking to jump in this pair, with potential to add more at the top WATR/moving averages. But with the way this pair is moving, it’s unlikely that I’ll get to hop in at a better than market price during the week.

  • WO: .7202
  • Top WATR: .7262
  • Bottom WATR: .7142
  • PWH: .7302
  • PWL: .7184

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