Forex Weekly Watch: Apr. 20 – 24, 2015

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

EUR/JPY went into counter-trend mode last week, now retesting a strong area of previous interest between 128.50 – 129.00. The question now is, “will sellers jump in now?” Of course we won’t know until we know, but I’m not against a small nibbler in the is area.  But given that the pair is essentially in a consolidation pattern now and in the middle of the recent range, I think the best move is to wait until we see a test of the area between top WATR (130.00 psychological area) and the top of the consolidation area (131.00)

  • WO: 128.54
  • Top WATR: 130.06
  • Bottom WATR: 127.02
  • PWH: 128.73
  • PWL: 126.10

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

GBP/JPY is another market that has been in consolidation mode for the past few weeks, although volatility has picked up nicely for short-term traders to take advantage of.  Fore this week, there are two ways to look at a chart like this: either as a breakout play or a reversal play at the top/bottom of the range. I’ll have to do a little digging into this week’s forex calendar for catalysts, but until I see something potentially game changing, I’m watching out for reversal plays at the top WATR level (also a minor psychological level) and the major psychological level that quickly turned the market last week at 175.00.

  • WO: 177.58
  • Top WATR: 179.26
  • Bottom WATR: 175.90
  • PWH: 178.74
  • PWL: 174.89

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

EUR/GBP’s price action consolidated last week, meaning we’re still in a bearish market for the time being.  .7250 – .7300 still looks attractive to sellers, as well as a strong break of last week’s strong support area, around .7170. It’s hard for me to go bullish on this pair without a strong break of the .7300 handle, but even then, the upside looks limited with .7375 as major resistance through out March.

  • WO: .7239
  • Top WATR: .7305
  • Bottom WATR: .7174
  • PWH: .7270
  • PWL: .7164

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