Weekly Watch: Jan. 9 – 13, 2017

EUR/JPY

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Looks like the trend is looking up for EUR/JPY, as the pair is forming an ascending channel on its 1-hour time frame. Price is closing in on the resistance at the 124.00 major psychological level, which might force it to turn back down towards support near the PWL and bottom WATR. Stochastic is indicating overbought conditions but if bulls continue pushing higher, the pair could make it past the top WATR and onto the 125.00 area.

  • WO: 123.29
  • Top WATR: 124.43
  • Bottom WATR: 122.16
  • PWH: 123.53
  • PWL: 122.02

GBP/JPY

GBP/JPY 1-hour Forex Chart

GBP/JPY 1-hour Forex Chart

Guppy finally completed its head and shoulders reversal formation but is hesitating to break below the neckline around the 142.50-143.00 levels. Stochastic just made it out of the overbought region to suggest a return in selling pressure, which might be enough to take the pair lower by 500 pips or the same height as the chart pattern. Keep in mind, though, that last week’s U.K. PMI readings all beat expectations so sterling could enjoy a bit of support for the time being.

  • WO: 143.48
  • Top WATR: 145.32
  • Bottom WATR: 141.44
  • PWH: 145.40
  • PWL: 142.51

EUR/GBP

EUR/GBP 1-hour Forex Chart

EUR/GBP 4-hour Forex Chart

The euro is also putting up a pretty good fight against the pound, as EUR/GBP is currently moving inside a rising wedge pattern visible on its 4-hour chart. Price is about to test the wedge resistance around the .8600 major psychological level and might be ready to turn lower since stochastic is in the overbought zone. If so, a test of the bottom WATR could be in the cards while a break lower could find support at the PWL. Recent data from the euro zone came in mostly stronger than expected as well.

  • WO: .8595
  • Top WATR: .8686
  • Bottom WATR: .8504
  • PWH: .8590
  • PWL: .8450

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