Weekly Watch: March 4 to 8, 2013

Last week we saw one of those crazy yen moves again, as both EUR/JPY and GBP/JPY dropped over 500 pips midway through the week. Could we see another similar drop this week? Or will the yen bears dominate the markets and send those pairs back to former highs?

EUR/JPY

EUR/JPY Hourly Chart

After the drop and upward break out of the symmetrical triangle, EUR/JPY is now hanging around the 122.00 level. A break above this level could lead to a bullish move back up to former highs around 125.00. Down south, I’ll be keeping my eye on 119.00. A solid break below this support zone could be the signal that all the bears are waiting for!

  • WO: 121.89
  • Top WATR: 123.65
  • Bottom WATR: 120.03
  • PWH: 125.35
  • PWL: 118.72

GBP/JPY

GBP/JPY Hourly Chart

We see pretty similar price action on GBP/JPY, with the major resistance point for the pair also being the WO (140.86), just below the 141.00 MaPs. If you’re looking to establish a long entry, you might wanna consider buying off the bottom WATR (139.13), as it held as support late on Friday. On the other hand, if you’re looking to put up a short position, you could wait for a test of the PWH around 143.00.

  • WO: 140.86
  • Top WATR: 142.61
  • Bottom WATR: 139.13
  • PWH: 143.01
  • PWL: 137.86

EUR/GBP

EUR/GBP Hourly Chart

For this week, I think the best bet for EUR/GBP may be the support level around the PWL and bottom WATR. If you scroll back over the past couple of weeks, you’ll see that this level held nicely. Of course, a solid candle close below this level would blow that idea out of the water, and that’s when you might wanna think about switching biases and going short!

  • WO: .8648
  • Top WATR: .8719
  • Bottom WATR: .8576
  • PWH: .8816
  • PWL: .8574

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