Weekly Watch: Oct. 28 to Nov. 1, 2013

Weekly Watch: Oct. 28 to Nov. 1, 2013

We saw a bit of action last week thanks to US jobs data and China monetary policy news, but volatility still remains low relative to recent months. We’ve got quite a few economic events to watch this week to possibly take volatility higher, and here are this week’s must-watch levels on EUR/JPY, GBP/JPY, and EUR/GBP!

EUR/JPY

A big run up to start last week for EUR/JPY to go with the recent trend higher, but Chinese monetary policy tightening quickly brought the pair back down, in which I saw a trading opportunity to go long. The trend could continue on, but a pullback certainly isn’t out of the question. 133.50 – 134.00 are still legitimate areas for the bulls to watch, while those already in the trend want to look at 135.50 – 136.00 for a move higher to possibly slow down.

EUR/JPY 1 hour chart

EUR/JPY 1 hour chart

  • WO: 134.92
  • Top WATR: 136.18
  • Bottom WATR: 133.66
  • PWH: 135.51
  • PWL: 133.59

GBP/JPY

Guppy is back to the middle of a range that’s been going on since mid-September. 158.00 seems to be a magnet as of late, so a break from the current levels could easily be +100 pips in either direction before finding support or resistance. The market has been in an uptrend over the last two weeks with the exception of a fast pullback on Chinese news. Will October’s trend higher resume?

GBP/JPY 1 hour chart

GBP/JPY 1 hour chart

  • WO: 157.99
  • Top WATR: 159.53
  • Bottom WATR: 156.45
  • PWH: 159.54
  • PWL: 156.86

EUR/GBP

EUR/GBP made new highs with ease since bottoming out at the end of September around .8300. The trend is higher, so a pullback to .8500 could attract new buyers into the mix, or a break above .8560 could mean current bulls may add more. .8600 would a good area for patient bears to start looking because the longer-term trend since the summer has been to the downside and that was an area of major support/resistance.

EUR/GBP 1 hour chart

EUR/GBP 1 hour chart

  • WO: .8539
  • Top WATR: .8591
  • Bottom WATR: .8488
  • PWH: .8556
  • PWL: .8449

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