Forex Weekly Watch: May 4 – 8, 2015

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

It looks like sentiment has completely shifted in the yen pairs last week with a strong rally for most higher; in EUR/JPY, the market blasted past the previous 131.00 resistance that I thought may hold. With the chart now looking like bulls are firmly in control, any pullbacks may be buying opportunities for those who missed the initial rally higher, or may even want to get bigger in their long positions. The bottom WATR and rising moving averages may be that area that the bulls will be watching out for, or a break of the PWH to draw in momentum players.

  • WO: 134.45
  • Top WATR: 136.07
  • Bottom WATR: 132.83
  • PWH: 135.26
  • PWL: 129.02

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

Guppy’s bullishness has already been confirmed for a couple of weeks now, and it looks like the bulls may already be getting a pullback to jump onto to get bigger in this trade. After finding and falling from the strong resistance 184.00, 182.00 could start drawing in buy orders, but I wouldn’t be surprised if it took a fall all the way to 180.00 before we find major support.  Stochastic is already showing oversold conditions, so it’s a tough call as to where the turn will happen, IF it does happen.

  • WO: 182.05
  • Top WATR: 183.76
  • Bottom WATR: 180.35
  • PWH: 184.48
  • PWL: 180.29

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

EUR/GBP made a parabolic move higher last week, easily breaking the downward trend that the market has been in since early April. The pair is now retesting a double top, resistance area that held in March, so I can’t say that it’s a sure shot higher for the pair from here.  A pullback lower to the bottom WATR and moving averages area could be a draw for buyers, but I think any upside moves will be limited to the top WATR and major psychological level of .7500.  Range bound for the week, maybe?

  • WO: .7387
  • Top WATR: .7459
  • Bottom WATR: .7316
  • PWH: .7419
  • PWL: .7132

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