Weekly Watch: September 17 to 21, 2012

Thanks to all those central bank moves over the past couple of weeks, the markets have been absolutely rockin’! Late in July, EUR/JPY was looking to set new all-time lows and now, two months later, the pair is 800 pips higher and back above the 100.00 handle! What a crazy time to be a cross-currency trader!

Enough of the chit-chat, let’s get down to business! Without further ado, I present to you this edition of my Weekly Watch!

EUR/JPY

EUR/JPY Hourly Chart

Boomshakalaka! This pair has been on FIRE! After rising 200 pips last Friday, EUR/JPY is now trading just below the 103.00 handle. The big question is, how long can it hold as resistance? If we see a strong candlestick close above that mark, it could be a sign that the pair is headed all the way to the top WATR and 104.00 MaPs.

  • WO: 102.79
  • Top WATR: 103.96
  • Bottom WATR: 101.62
  • PWH: 103.02
  • PWL: 99.53

GBP/JPY

GBP/JPY Hourly Chart

If you feel that the move late last week is overextended and we’re due for a retracement, I suggest you keep tabs on this pair throughout the week. I suspect we could see a ton of interest at the 126.00 MaPs. Not only does this line up with the bottom WATR, but it was a solid resistance point two weeks ago. It might just turn out to be a resistance-turned-support level, so watch out!

  • WO: 127.13
  • Top WATR: 128.26
  • Bottom WATR: 126.00
  • PWH: 127.28
  • PWL: 124.44

EUR/GBP

EUR/GBP Hourly Chart

Although price action hasn’t exactly been smooth, EUR/GBP has slowly climbed its way back up to the .8100 handle. If you’re bearish on the pair, we could find some tough resistance at the top WATR. On the flip side, if you’re in the bull camp and waiting for a retracement, you could see how price reacts to the .8050 MiPs.

  • WO: .8084
  • Top WATR: .8136
  • Bottom WATR: .8032
  • PWH: .8116
  • PWL: .7967

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  • ebenezer

    please what is the meaning of

    WO: .8084Top WATR:
    Bottom WATR:
    PWH:
    PWL:

    thanks for your wonderful work

    • cyclopip

      WO – Week Open
      WATR – ATR
      PWH – Previous Week High
      PWL – Previous Week Low

      You can learn more about my trading framework by checking out this post:
      http://www.babypips.com/blogs/