Forex Weekly Watch: Apr. 25-29, 2016

EUR/JPY

EUR/JPY 4-hour Forex Chart

EUR/JPY 4-hour Forex Chart

Watch out for a possible long-term reversal, fellas! EUR/JPY is forming a double bottom pattern on its 4-hour time frame, indicating that bears are exhausted from the dive. Price has yet to test the neckline of the formation around the 128.00 major psychological mark, which is near the top WATR for this week. If last week’s ECB rate statement ain’t enough to keep this pair down, let’s see how the BOJ announcement on Thursday might affect price action.

  • WO: 125.51
  • Top WATR: 126.82
  • Bottom WATR: 124.20
  • PWH: 125.51
  • PWL: 121.72

GBP/JPY

GBP/JPY 4-hour Forex Chart

GBP/JPY 4-hour Forex Chart

Here’s another potential reversal setup on a yen pair. Guppy made an upside breakout from its long-term descending trend line, which suggests that the selloff might already be over. Too bad for my short position! Time to switch gears? It looks like price has already cleared the hurdle at the area of interest around 159.00-160.00 and might be aiming for the next resistance near the 164.00 major psychological mark and top WATR. However, stochastic is already in the overbought zone so a pullback to the broken trend line might be possible.

  • WO: 161.82
  • Top WATR: 164.32
  • Bottom WATR: 159.33
  • PWH: 161.18
  • PWL: 152.53

EUR/GBP

EUR/GBP 4-hour Forex Chart

EUR/GBP 4-hour Forex Chart

Bahh, double whammy for my trades! EUR/GBP broke below the rising trend line support on the 4-hour time frame, signaling that a reversal may be in order. You know what they say, the trend is your friend until the bend at the end! Right now, price is still drawing support near the .7800 handle but stronger selling pressure could send it to the next area of interest near .7700. Stochastic is nearing the oversold region so a pullback to the broken trend line might take place as well.

  • WO: .7756
  • Top WATR: .7835
  • Bottom WATR: .7677
  • PWH: .7994
  • PWL: .7784

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