Weekly Watch: August 5 to 9, 2013

The weekend was pretty awesome, but now it’s time to put on our working gloves and hard hats and start mining some pips!

Of course, Monday wouldn’t be complete without my Weekly Watch, so here’s my take on EUR/JPY, GBP/JPY, and EUR/GBP for this week!

EUR/JPY

EUR/JPY Hourly Chart

After going on a steep drop late in July, EUR/JPY came storming back up the charts last week, rallying over 200 pips from its lows. The pair is currently trading around 131.00 but to be perfectly honest, I think it might be difficult to trade EUR/JPY this coming week. For now, I’m keeping an eye on the 130.50 level for a potential bounce. On the flip side, if you’re looking to go short, your best bet may be to wait for a retest of the confluence zone around the previous week high (131.95) and the 132.00 MaPs.

  • WO: 131.41
  • Top WATR: 133:00
  • Bottom WATR: 129.85
  • PWH: 131.95
  • PWL: 129.33

GBP/JPY

GBP/JPY Hourly Chart

Heads up homies! After following other yen crosses and dropping over the past two weeks, GBP/JPY seems to have retraced a bit. It’s currently finding resistance at the PWH (151.55), which lines up closely with a 50.0% Fib level. If this holds, we may see price drop back lower. Watch out for the bottom WATR and 149.50 mark, as this also lines up with the neckline of a double bottom that formed last week.

  • WO: 151.25
  • Top WATR: 153.05
  • Bottom WATR: 149.51
  • PWH: 151.55
  • PWL: 148.26

EUR/GBP

EUR/GBP Hourly Chart

Lastly, here’s an interesting setup on EUR/GBP. As pointed out by Big Pippin in today’s Chart Art, the pair seems to have formed a double top, with the weekly open price serving as the neckline. I suspect that a bearish candle close below the WO could signal a break lower, with price action having the potential to hit the PWL and bottom WATR.

  • WO: .8688
  • Top WATR: .8744
  • Bottom WATR: .8632
  • PWH: .8769
  • PWL: .8621

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