Forex Weekly Watch: Oct. 12 – 16, 2015

EUR/JPY

EUR/JPY 1-Hour Forex Chart

EUR/JPY 1-Hour Forex Chart

It would have been another week of tight price action for EUR/JPY had it not been for an end-of-week breakout to the upside.  This move shows that buyers are still very much in control, which means I’m only looking long plays this week.

A pullback lower to the bottom weekly ATR (WATR) level and rising trendline is the area I’m targeting as my buy zone incase it does draw in support, and I’m also looking for a break-and-retest setup of that strong resistance area around the PWH/137.00 major psychological area.

  • WO: 136.56
  • Top WATR: 137.91
  • Bottom WATR: 133.23
  • PWH: 136.96
  • PWL: 134.41

GBP/JPY

GBP/JPY 1-Hour Forex Chart

GBP/JPY 1-Hour Forex Chart

Last week, I pointed out that the top WATR area just under the major psychological level of 185.00 was the one to watch for sellers, and the market did manage to make its way up there by the end of the week.  The question now is how forex traders will treat this area that happens to be a previous area of strong interest (broken support-turned-resistance).

With the recent bullish sentiment in risk, I wouldn’t look to buy some Japanese yen just yet, but if it does get up to that area between the top WATR and September resistance area (187.00 – 188.00), then I’ll look for reversal candles before considering short.

A return to the 182.00 handle is likely to draw in support given the recent risk-on sentiment, and since it did hold as support twice in September.

  • WO: 184.08
  • Top WATR: 186.07
  • Bottom WATR: 182.10
  • PWH: 184.86
  • PWL: 181.89

EUR/GBP

EUR/GBP 1-Hour Forex Chart

EUR/GBP 1-Hour Forex Chart

EUR/GBP has been all about range behavior for a while now, but shifting slightly higher in the last couple of weeks.  Based on recent price action, the .7350 level looks to be the new support area and the .7430 level looks to be the new resistance area, so I’ll look at both for short-term reversal plays this week.   Of course, with the market grinding higher, I’m going to stay open to the possibility of an upside breakout of the strong .7430 area as a sign to go long on momentum behavior potential.

  • WO: .7422
  • Top WATR: .7492
  • Bottom WATR: .7352
  • PWH: .7430
  • PWL: .7333

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