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I’ve got my eye on long-term setups on EUR/JPY, GBP/JPY, and EUR/GBP this week as the upcoming top-tier events might make or break these trends.

EUR/JPY

EUR/JPY 4-hour Forex Chart
EUR/JPY 4-hour Forex Chart

EUR/JPY has been trending higher in the past few months and is moving inside an ascending channel visible on its 4-hour time frame. Price is currently testing support around the 133.00 major psychological level, still deciding whether to make a bounce or a break.

A bounce could take it back up to the top of the channel near the 140.00 handle or at least until the mid-channel area of interest around 137.00. A downside break, on the other hand, could mark the start of a longer-term downtrend. Stochastic is already indicating oversold conditions, which puts the odds in favor of the bulls for now.

  • WO: 132.00
  • Top WATR: 133.03
  • Bottom WATR: 130.96
  • PWH: 134.50
  • PWL: 131.71

GBP/JPY

GBP/JPY Daily Forex Chart
GBP/JPY Daily Forex Chart

No wonder Guppy is stalling on its rally! Price is testing the top of its rising wedge visible on the daily time frame and might be due for another dip to support.

My trailing stop on my long position got hit when the pair tumbled from the 151.00 area last week, but it looks like the uptrend is still intact. I might need to hold out for a larger correction, though, as pound bulls don’t look so eager to charge just yet.

Besides, we’ve got the BOE statement on this week’s docket so it’s understandable that pound traders are reducing their exposure. In any case, I’ll stand ready for another chance to go long or to switch my bias depending on how the event turns out.

  • WO: 149.17
  • Top WATR: 150.63
  • Bottom WATR: 147.71
  • PWH: 151.39
  • PWL: 148.85

EUR/GBP

EUR/GBP Daily Forex Chart
EUR/GBP Daily Forex Chart

Euro bulls don’t seem ready to charge either as EUR/GBP is sliding back inside to the wide area of interest between .8800 to .8900 while stochastic is heading south.

The oscillator is closing in on oversold levels, however, so sellers might need to take a break pretty soon. If buyers are able to regain the upper hand, the pair could resume its rally to the swing high or at least until the area of interest at the .9000 major psychological mark.

As with Guppy, this pair could take its cues from the BOE decision since the ECB has already had its say last week.

  • WO: .8837
  • Top WATR: .8908
  • Bottom WATR .8766
  • PWH: .8976
  • PWL: .8851

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