Weekly Watch: January 14 to 18, 2013

Price action on our favorite crosses was absolutely crazy last week. I wonder if it’ll be the same this week!

You can bet your bottom dollar that that’s what I’m hoping for. After missing a huge move on EUR/JPY, I’m eager and ready to get me some action over the next few days.

Without further ado, here are this week’s charts for EUR/JPY, GBP/JPY, and EUR/GBP!

EUR/JPY

EUR/JPY Hourly Chart

Unbelievable! EUR/JPY has managed to climb almost 600 pips from its low last week. As much as I’m tempted to sell this sucker, I don’t wanna go against such a strong trend. I think the safest way to play this pair is to buy on a pullback, perhaps around the week open (WO) and previous week high (PWH).

  • WO: 119.2
  • Top WATR: 120.56
  • Bottom WATR: 117.84
  • PWH: 119.34
  • PWL: 113.55

GBP/JPY

GBP/JPY Hourly Chart

The 145.00 major psychological handle could offer some resistance in the short term, but as with EUR/JPY, I think it’s better to wait for a retracement and buy GBP/JPY. The 144.00 handle looks like a good place to do just that, as it served as an area of interest last week and is just pips away from the WO.

  • WO: 143.98
  • Top WATR: 145.36
  • Bottom WATR: 142.60
  • PWH: 114.42
  • PWL: 139.41

EUR/GBP

EUR/GBP Hourly Chart

The euro has been showing its strength on EUR/GBP too, so it’ll be hard to go short this pair, especially since it has been forging new highs. Right now, the only level that I’m eyeing is the bottom WATR, which is located near a former resistance zone. But I’ll have to sit tight for now, because price will need to pull back deeply for it to reach those levels again.

  • WO: .8281
  • Top WATR: .8328
  • Bottom WATR: .8234
  • PWH: .8288
  • PWL: .8104

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  • S Michael

    do u give trade signal alerts?

    • cyclopip

      I don’t. I merely share my trade ideas here on my blog. 🙂