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It looks like the downtrend in EUR/JPY is still in high gear, which means the break of the previous week low (also opening price) might be a legit signal to hop into the downtrend for you Japanese yen bulls.  For the more conservative, volatility has been pretty high, so an easy pullback to the top WATR level is not out of the question to get in at a better price.

EUR/JPY 1 hour forex chart
EUR/JPY 1 hour forex chart
  • WO: 137.47
  • Top WATR: 138.69
  • Bottom WATR: 136.25
  • PWH: 141.25
  • PWL: 137.50


Guppy is also in a strong downtrend, already breaking last week’s low convincingly. It’s nearly touched the bottom WATR level and bounced, but that may be short-lived given the strength of sellers in the past couple of weeks.  A retest of the PWL and WO has a good probability of drawing in more sellers if the fundamental drivers of this move stays the same.

GBP/JPY 1 hour forex chart
GBP/JPY 1 hour forex chart
  • WO: 167.57
  • Top WATR: 169.15
  • Bottom WATR: 165.89
  • PWH: 171.46
  • PWL: 167.57


EUR/GBP longer-term down trend move seems to be stabilizing and turning into a range like behavior pattern.  We saw a spike in volatility on broad sterling weakness today, which may be a good thing for EUR/GBP bears.  I’m a little cautious on this one because of the higher “low” last week, and I think I’ll stay neutral on this pair for now.

EUR/GBP 1 hour forex chart
EUR/GBP 1 hour forex chart
  • WO: .8206
  • Top WATR: .8256
  • Bottom WATR: .8157
  • PWH: .8306
  • PWL: .8187

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