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EUR/JPY 1 Hour Forex Chart
EUR/JPY 1 Hour Forex Chart

It looks like last week’s PWL area did end up being the buying opportunity for the week as currency traders jumped in long early around 140.23.  Despite the bulls taking back control, EUR/JPY is still moving in a sideways range and currently retesting a strong resistance area around 141.80 that held off buyers mid-March and in late January.  I don’t see a clear direction for this pair at the moment, which means range and breakout plays may be the ones to consider at this time.

  • WO: 141.53
  • Top WATR: 142.63
  • Bottom WATR: 140.43
  • PWH: 141.77
  • PWL: 140.23


GBP/JPY 1 Hour Forex Chart
GBP/JPY 1 Hour Forex Chart

It looks like the confluence of technical tools did pan out as a buy indicator as forex traders held 170.00 before rocketing higher thanks to economic data (and helping my long GBP/JPY position out). There is a major economic event for Sterling this week, so I won’t make any bold technical calls, but I think a pullback lower would interest longer-term trend players to take a closer look. A retest of 173.00 is definitely one to watch as it is a major resistance area (it was unbreakable in both January and March).

  • WO: 172.02
  • Top WATR: 173.47
  • Bottom WATR: 170.58
  • PWH: 172.19
  • PWL: 169.50


EUR/GBP 1 Hour Forex Chart
EUR/GBP 1 Hour Forex Chart

As I mentioned in last week’s Weekly Watch, if the market held below .8300, sellers would continue to jump in the longer term downtrend. It did hold, and thanks to positive U.K. data, sellers jumped all over this pair and pushed it lower. It found support just under the PWL (.8230), where the market hung around until the end of the week.

For now, I’m watching this week’s PWL (.8215) for a possible breakout play or a pullback to the .8250 – .8280 to jump on the longer-term trend at a better price. Again, there’s major U.K. data this week on the forex calender, so I’m staying in reactionary mode for now.

  • WO: .8231
  • Top WATR: .8278
  • Bottom WATR: .8185
  • PWH: .8284
  • PWL: .8215

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