Weekly Watch: Oct. 21 to 25, 2013

Weekly Watch: Oct. 21 to 25, 2013

For the cross-currency pairs, it seems that volatility continues to tighten up. We’ve got some major events this week to possibly change that, so here are this week’s must-watch levels on EUR/JPY, GBP/JPY, and EUR/GBP!

EUR/JPY

It was a slow grind higher for EUR/JPY last week and we can see that volatility was on the low side with the high’s and low’s of the week almost have of the normal volatility range. This week is stacked with data from Europe, so this may play out as a breakout scenario. A break above the PWH looks like a possible entry for EUR/JPY bulls. For the bears, the next support area runs between 132.60 to 133.00, which is a good amount of pips from the current levels.

EUR/JPY 1 hour chart

EUR/JPY 1 hour chart

  • WO: 133.85
  • Top WATR: 135.14
  • Bottom WATR: 132.57
  • PWH: 134.19
  • PWL: 132.65

GBP/JPY

On the higher timeframes, 159.50 – 160.00 is an area of major resistance, and on a break of the PWH, the recent trend higher could be limited to that area. The pair is displaying really tight consolidation at the moment, so I wouldn’t rule out a break to the downside (targets around 157.00 makes sense) with the right catalyst. We will probably get some from the UK this week with a few tier 1 events on the forex calendar.

GBP/JPY 1 hour chart

GBP/JPY 1 hour chart

  • WO: 158.29
  • Top WATR: 159.86
  • Bottom WATR: 156.73
  • PWH: 158.69
  • PWL: 156.72

EUR/GBP

EUR/GBP traders kept the range tight last week of around 66 pips–will the range continue? We’ve got data from both Europe and the UK, but unless they come out really far from expectations, I think the volatility could be contained within the range. Watch .8500 as this week’s potential top, while .8400 may serve as a buying opportunity as long as the data doesn’t come out with a big surprise.

EUR/GBP 1 hour chart

EUR/GBP 1 hour chart

  • WO: .8461
  • Top WATR: .8513
  • Bottom WATR: .8410
  • PWH: .8497
  • PWL: .8431

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