Forex Weekly Watch: May 25 – 29, 2015

EUR/JPY

EUR/JPY 1 Hour Forex Chart

EUR/JPY 1 Hour Forex Chart

Last week, EUR/JPY gave back its May gains to retest what looks to be a strong area of support for the bulls. After testing–and quickly reversing–from the 137.00 handle, the pair is now back to the 133.75 area that has held was the bottom all of May. So, it’s a point where there is no directional bias on the short-term, but a little buying support on the higher timeframes. With no visible support until around 127.00, a downside break gives the better R:R, but buyers could still be strong enough to hold this area for a short-term gain.

  • WO: 133.76
  • Top WATR: 135.35
  • Bottom WATR: 132.18
  • PWH: 136.96
  • PWL: 133.73

GBP/JPY

GBP/JPY 1 Hour Forex Chart

GBP/JPY 1 Hour Forex Chart

Guppy’s chart looks much more clear with forex trader intentions as the recent looks to still be intact and strong despite the end-of-week pullback. The market is currently testing the moving averages, a Fibonacci retracement area and a previous consolidation area. So, the odds are for buyers to jump in here, but don’t discount the possibility of a downside break after that late pullback last week. On either side the R:R looks to be pretty even with the recent swing high and low likely to draw in range players in the short-term.

  • WO: 188.08
  • Top WATR: 189.85
  • Bottom WATR: 186.31
  • PWH: 190.02
  • PWL: 185.99

EUR/GBP

EUR/GBP 1 Hour Forex Chart

EUR/GBP 1 Hour Forex Chart

EUR/GBP made another strong move last week, pushing the market to potential break another minor support area around .7100.  If it does break and volatility remains on the upswing, then a retest of .7000 is very likely this week. The question then is “will it break .7000 this time?” Of course, we won’t know until we get there but for now, I’m still bearish with my open EUR/GBP short, and will remain bearish in the short-term unless those moving averages are broken to the upside.

  • WO: .7113
  • Top WATR: .7190
  • Bottom WATR: .7036
  • PWH: .7283
  • PWL: .7090

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  • I think risk out of Greece can potentially -vely impact aud/jpy, eur/jpy and gbp/jpy as carry trades may be liquidated in the event of a risk off trade.

    • Cyclopip

      Great point @disqus_at5dwsP25C:disqus! Unfortunately, Greece has been given tons of money over the decades. I don’t think I’ll make a move on the notion of them defaulting until it happens. What do you think?

      • yes very true the tendency to throw good money after bad is increasingly common these days and too much at stake on Greece, so some last minute bailout is probably on.