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We saw a good amount of volatility in EUR/JPY last week with around 600 pips of directional movement, but it looks like it’s an even battle between long-term buyers and sellers at the moment.  Even this week, 140.50 seems to be a new line in the sand for the bulls, while 143.00 has been seller territory for now.  A retest and hold of 142.00 might be the simple range play of the week, but from the bull side, it looks like a double bottom forming at 140.50.

EUR/JPY 1 hour forex chart
EUR/JPY 1 hour forex chart
  • WO: 140.89
  • Top WATR: 142.04
  • Bottom WATR: 139.75
  • PWH: 142.91
  • PWL: 140.49


After a strong downside move then reversal back up, Guppy is now trading in tight range between 170.50 to just under 172.00.  This has the makings of a consolidation breakout setup, and based on what’s coming up on the forex calendar, that just might be what we get.

GBP/JPY 1 hour forex chart
GBP/JPY 1 hour forex chart
  • WO: 170.81
  • Top WATR: 172.33
  • Bottom WATR: 169.29
  • PWH: 171.88
  • PWL: 168.35


After catching a nice downside move thanks to U.K. retail sales, EUR/GBP is back to a strong support area around .8230 (also held as support Dec. 2, 2013).  The pair is still in a longer-term downtrend, so this next retest just might be the straw that breaks the camels back to bring the pair down to levels last seen at the end of 2012.  A pullback to top WATR is also a pretty good looking setup to hit that downtrend at slightly better prices than we’re currently seeing.

EUR/GBP 1 hour forex chart
EUR/GBP 1 hour forex chart
  • WO: .8248
  • Top WATR: .8296
  • Bottom WATR: .8200
  • PWH: .8349
  • PWL: .8233

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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.