Weekly Watch: December 17 to 21, 2012

With so much happening to the yen crosses over the weekend, I’m raring to jump into trading this week! But first, here are the must-watch levels on our favorite crosses!


EUR/JPY Hourly Chart

Will you look at that huge gap that formed on EUR/JPY! It’s 140 pips large, son! This means that a solid trading opportunity might be in the works. Right now, I’ve got my eyes on the area around the 110.00 major psychological handle for a potential retracement play. Not only is the top WATR there, but the previous week high is right around that area too!

  • WO: 111.19
  • Top WATR: 112.50
  • Bottom WATR: 109.88
  • PWH: 109.99
  • PWL: 105.97


GBP/JPY Hourly Chart

We’ve got an almost identical setup on GBP/JPY, with the confluence zone right at the 135.00 handle. I think we might see a nice little bounce around that area, but in case that level gives way, I’ll be looking for the 134.40 level to act as support again.

  • WO: 136.37
  • Top WATR: 137.65
  • Bottom WATR: 135.09
  • PWH: 135.45
  • PWL: 131.67


EUR/GBP Hourly Chart

Last but not least, we’ve got EUR/GBP finding resistance around the .8150 handle again. This area actually looks like a good place to get short since it held as resistance so many times in the past. But if getting short ain’t your thing, you may want to consider going long around .8100, where the bottom WATR is.

  • WO: .8154
  • Top WATR: .8202
  • Bottom WATR: .8106
  • PWH: .8146
  • PWL: .8034
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