Forex Weekly Watch: Jan. 18 – 22, 2016

EUR/JPY

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Even though EUR/JPY tumbled towards the end of the previous week, this yen pair is still staying the most resilient one in the bunch, as an ascending channel appears to be forming on its 1-hour forex chart. Top that off with an upward crossover from the moving averages plus an oversold stochastic signal, and we’ve got a gameplan for a potential bounce to the channel resistance, previous week high and top WATR. Of course this depends on market sentiment and the euro zone catalysts this week, which include its top economies’ PMIs and the ECB monetary policy statement.

  • WO: 127.70
  • Top WATR: 128.83
  • Bottom WATR: 126.58
  • PWH: 128.75
  • PWL: 127.32

GBP/JPY

GBP/JPY 1-hour Forex Chart

GBP/JPY 1-hour Forex Chart

Guppy tried to stay above the 169.00 support area for the most part of last week, but the lower highs of forex price action eventually forced the floor to give way. The pair is finding support at the 166.00 area for now and looks poised for a pullback to the Fib levels, which coincide with the top WATR for this week and the previous support zone. We’ve got a bunch of major reports lined up from the U.K. this week so higher volatility might be in the cards.

  • WO: 166.52
  • Top WATR: 170.89
  • Bottom WATR: 164.75
  • PWH: 172.76
  • PWL: 166.18

EUR/GBP

EUR/GBP 1-hour Forex Chart

EUR/GBP 1-hour Forex Chart

Yep, this one’s still trending higher! In fact a rising trend line can be drawn to connect the latest lows of forex price action ever since the pair broke out of its long-term range. Price appears to have found resistance at the .7700 major psychological level last week and might be ready to retreat to the trend line, which is right ’round the bottom WATR this week and 61.8% Fibonacci retracement level on the latest swing low and high.

  • WO: .7668
  • Top WATR: .7738
  • Bottom WATR: .7598
  • PWH: .7695
  • PWL: .7443

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