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Big moves for the Japanese yen across the majors as the new year opened up with pullbacks in the yen crosses. EUR/JPY is no exception, and now it’s currently testing the consolidation area around 142.00 from two weeks ago. Now that it’s consolidating once again, this looks like a potential breakout play in the works. Since the longer-term trend is higher, watch out for a break above 142.50. Strong support at the bottom WATR level is also worth a closer look.

EUR/JPY 1 hour forex chart
EUR/JPY 1 hour forex chart
  • WO: 142.50
  • Top WATR: 143.68
  • Bottom WATR: 141.32
  • PWH: 145.15/strong>
  • PWL: 141.96


This one hour forex chart of GBP/JPY is very similar to EUR/JPY above, which means we may be seeing another longer-term chance to sell some yen. Stay on your toes because this pair does move fast and we may not have to wait long to see another retest-and-support of the bottom WATR level.  A break of 172.00 to the upside is definitely worth a look with great R:R potential.

GBP/JPY 1 hour forex chart
GBP/JPY 1 hour forex chart
  • WO: 171.89
  • Top WATR: 173.42
  • Bottom WATR: 170.37
  • PWH: 174.90
  • PWL: 171.05


The longer-term trend in favor of sterling made another leg down last week after breaking the holiday consolidation. We’re currently seeing a pullback higher, creating an opportunity for pound bulls to get in this pair at a much better price than last week. Watch the top WATR area for potential selling, which may be likely as it lines up with a strong broken support area around .8350.

EUR/GBP 1 hour forex chart
EUR/GBP 1 hour forex chart
  • WO: .8291
  • Top WATR: .8340
  • Bottom WATR: .8242
  • PWH: .8374
  • PWL: .8270

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This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.