Forex Weekly Watch: June 27 – July 1, 2016

EUR/JPY

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Yowza! That was a huge drop for EUR/JPY last week but price did show some signs of a correction before the weekend came along. The pair appears to have found resistance close to the 50% Fib then opened lower this week, but a larger pullback to the area of interest at the 61.8% level might still be possible until it forms new lows. Keep close tabs on the EU negotiations to gauge if a break below the bottom WATR and PWL could take place soon!

  • WO: 111.80
  • Top WATR: 113.64
  • Bottom WATR: 109.97
  • PWH: 122.05
  • PWL: 109.29

GBP/JPY

GBP/JPY 1-hour Forex Chart

GBP/JPY 1-hour Forex Chart

Guppy made an even sharper dive after a Brexit became apparent, but a quick pullback to the 38.2% Fibonacci retracement level also took place. That area appears to have held as resistance already, although a higher retracement to the 50% Fib isn’t entirely impossible just yet. A break below the previous week low and bottom WATR could show that pound bears aren’t done painting the town red and that a long-term selloff could be in the cards.

  • WO: 136.33
  • Top WATR: 140.00
  • Bottom WATR: 132.67
  • PWH: 160.16
  • PWL: 133.35

EUR/GBP

EUR/GBP Daily Forex Chart

EUR/GBP Daily Forex Chart

EUR/GBP skyrocketed following last week’s EU referendum, testing the resistance at the .8300 major psychological mark. Zooming out to the daily time frame reveals that this is a major area of interest and might spur a bit of profit-taking. If so, the pair could retreat to the bottom WATR or the former resistance around .8000 before resuming its climb. A break past the top WATR and previous week high could be enough to confirm that longer-term rallies are in the cards.

  • WO: .8201
  • Top WATR: .8292
  • Bottom WATR: .8110
  • PWH: .8315
  • PWL: .7601

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