Weekly Watch: August 13 to 17, 2012

First off, congratulations to the U.S. men’s basketball team for striking gold in the Olympics! And kudos to the Spanish team for putting up one helluva fight! We got everything we would want from a championship game and more!

Now, let’s get down to business – time to take a look at this week’s critical levels on EUR/JPY, GBP/JPY, and EUR/GBP!

EUR/JPY

EUR/JPY Hourly Chart

I’m keeping an eye on the 96.00 major psychological handle (MaPs) for now since I think it’s a make-or-break level for EUR/JPY. If sellers can manage to push price below this zone, its next stop could be around the bottom WATR near 95.00. Meanwhile, up north, my eye is set on the area between the top WATR and the previous week high (PWH).

  • WO: 96.21
  • Top WATR: 97.40
  • Bottom WATR: 95.02
  • PWH: 97.82
  • PWL: 95.71

GBP/JPY

GBP/JPY Hourly Chart

I just love the range that has formed on GBP/JPY… it’s as clear as they get! There’s a solid resistance zone around 123.00, so I may look to get short in that area. Down below, there seems to be interest around 122.00, so I’ll be monitoring that level as well.

  • WO: 122.61
  • Top WATR: 123.84
  • Bottom WATR: 121.38
  • PWH: 123.27
  • PWL: 121.74

EUR/GBP

EUR/GBP Hourly Chart

Lastly, we have EUR/GBP, which has been sliding down the charts. This week, I’ll be looking for a potential reversal around .7800, a major support area in the past. And I think it would be wise to be on the lookout for a chance to play a pullback around .7900, which not only lines up with the top WATR, but was also a resistance level in the past 2 weeks.

  • WO: .7843
  • Top WATR: .7898
  • Bottom WATR: .7788
  • PWH: .7964
  • PWL: .7828

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