EUR/JPY
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.
- WO: 140.89
- Top WATR: 142.04
- Bottom WATR: 139.75
- PWH: 142.91
- PWL: 140.49
GBP/JPY
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.
- WO: 170.81
- Top WATR: 172.33
- Bottom WATR: 169.29
- PWH: 171.88
- PWL: 168.35
EUR/GBP
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.
- WO: .8248
- Top WATR: .8296
- Bottom WATR: .8200
- PWH: .8349
- PWL: .8233
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