Forex Weekly Watch: May 9-13, 2016

EUR/JPY

EUR/JPY 4-hour Forex Chart

EUR/JPY 4-hour Forex Chart

Looks like euro bears are still at it! EUR/JPY continues to test the key support area around the 121.50-122.00 levels, possibly attempting to push for a break lower. If so, the pair could be in for another drop, likely taking it down to the next support at bottom WATR or much lower. If support holds, on the other hand, a bounce to the nearby resistance at top WATR and the previous week high near the 123.50 minor psychological level could take place.

  • WO: 122.02
  • Top WATR: 123.37
  • Bottom WATR: 120.68
  • PWH: 123.55
  • PWL: 121.49

GBP/JPY

GBP/JPY 4-hour Chart

GBP/JPY 4-hour Chart

Are pound bears back in the game? After breaking above a descending trend line the other week, GBP/JPY is now creating a falling channel on its 4-hour time frame. Price is stalling at the mid-channel area of interest and might be due for another bounce back to the top or a drop to the bottom near the 150.00 major psychological support. Stochastic is on the move up, suggesting that buyers are starting to gain the upper hand. Watch out for more volatility around the BOE statement and MPC minutes release on Thursday!

  • WO: 154.32
  • Top WATR: 156.77
  • Bottom WATR: 151.88
  • PWH: 156.66
  • PWL: 153.65

EUR/GBP

EUR/GBP 4-hour Chart

EUR/GBP 4-hour Chart

EUR/GBP is still hovering around the .7800-.7900 area, still deciding where to go next. A selloff from these levels could complete the right shoulder of a head and shoulders reversal chart pattern while a rally could show that the longer-term uptrend is still intact. Stochastic is pointing up so a move higher could be possible, but it might all boil down to the outcome of the BOE statement later on in the week.

  • WO: .7905
  • Top WATR: .7979
  • Bottom WATR: .7832
  • PWH: .7947
  • PWL: .7821

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