Our three favorite crosses, EUR/JPY, GBP/JPY, and EUR/GBP, went on a rampage on the charts last week... which is more than I can say for Quinton "Rampage" Jackson, who looked unmotivated in his loss against Ryan Bader over the weekend!
The three pairs and straight out ripped through the intraweek levels that we highlighted in last week's Weekly Watch, and they formed some pretty good breakout setups in the process.
Let's take a look at what this week has in store for us, shall we?
Over 400 pips in just one week!!! Needless to say, EUR/JPY has been beastin' on the charts. But it's hard to imagine this pair sustaining this pace without a significant pullback. That being said, I will be watching the Fib levels and major psychological handles on this pair for opportunities to buy dips and catch the strong uptrend. The area of 109.00, which lines up well with the previous week high, will be the key in determining whether we'll see a sizeable pullback or not. Of course, we've got to stay alert for breakouts to the upside, too.
- WO: 109.38
- Top WATR: 110.80
- Bottom WATR: 107.96
- PWH: 109.08
- PWL: 104.66
GBP/JPY looks similar to EUR/JPY, so I'll be approaching it in the same manner. The 128.00 and 127.00 major psychological levels look like good candidates for retracement points, though I think the 126.50 former resistance area will present the best setup if price somehow manages to make it back down there. Up north, I believe 130.00 will be a good level to watch.
- WO: 129.10
- Top WATR: 130.39
- Bottom WATR: 127.81
- PWH: 128.79
- PWL: 125.47
For the next couple of days, I will be keeping my eye on .8500 and .8400. As you can see, .8500 was a solid resistance level last week, and .8400 has been a major resistance level in the past as well. I think the markets will continue respecting these levels, at least for another week.
- WO: .8474
- Top WATR: .8540
- Bottom WATR: .8408
- PWH: .8506
- PWL: .8315
- Weekly Watch: December 12 to 16, 2011 23:16 11 December 2011
- Weekly Watch: February 13 to 17, 2012 23:55 12 February 2012
- Weekly Watch: January 30 to February 3, 2012 23:20 29 January 2012
- Weekly Watch: February 20 to 24, 2012 00:12 20 February 2012
- Weekly Watch: March 12 to 16, 2012 22:19 11 March 2012