Lots of potential volatility this week thanks to upcoming central bank events, so here are the must-watch levels on EUR/JPY, GBP/JPY, and EUR/GBP to get in the forex trading groove!
EUR/JPY
A pretty break for Yen bears last week, but the pair is testing a major resistance level that held like a champ in the latter half of October. Is it a break or bust here? Only time can tell, but either way, there are opportunities for both bulls and bears to play their biases on some nice technical setups (bullish upside break of resistance or a big reversal at resistance).
- WO: 135.38
- Top WATR: 136.64
- Bottom WATR: 134.13
- PWH: 135.26
- PWL: 132.20
GBP/JPY
Big time break out as bullish GBP sentiment continues to work in Sterling’s favor. I’m not sure it can continue the momentum higher from here, and for those who agree, a pullback to the bottom WATR area is one to watch. The pullback could be deep so watch the entire Fibonacci retracement area, all the way down to 159.50.
- WO: 161.78
- Top WATR: 163.24
- Bottom WATR: 160.33
- PWH: 161.66
- PWL: 157.99
EUR/GBP
It looks like consolidation is the name of the game for EUR/GBP traders to start off the week. That sentiment probably won’t hold out for the rest of the week thanks to a forex calendar laced up with big events.
The current trend is to the downside, but it might also behoove you to consider a move to the upside a possibility as well. A “consolidation break” play might be the best one to consider now for traders in this market.
- WO: .8368
- Top WATR: .8424
- Bottom WATR: .8313
- PWH: .8464
- PWL: .8339
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