EUR/JPY
It looks like the breakout out of consolidation is the real deal as it only took a 38% Fib retracement before more sellers jumped into the new downtrend. For this week, I’m only looking at sell plays on EUR/JPY, with a pullback higher as a high probability of attracting more sellers.
The confluence of top WATR, major psychological level, and moving averages may serve as the new resistance area for this week.
- WO: 139.09
- Top WATR: 140.11
- Bottom WATR: 138.08
- PWH: 140.95
- PWL: 138.78
GBP/JPY
This market looks pretty similar to EUR/JPY as the Japanese Yen is finding strength across the board. A pullback to the top WATR level is a great place to watch for guppy bears to take action, especially since it lines up with the major psychological area of 172.00. On the downside, 170.00 might be a hard level to break, but if it does, watch out below!
- WO: 170.79
- Top WATR: 172.06
- Bottom WATR: 169.52
- PWH: 172.75
- PWL: 170.17
EUR/GBP
EUR/GBP‘s downtrend is still intact with the market making fresh 2014 lows and holding below .8200 last week. Any significant support and resistance breaks should be handled carefully, so I’ll be watching and waiting for now. A pullback to the .8200 area puts the market back in touch with the moving averages, and if it holds there, bears may want to take another look at this downtrend.
- WO: .8143
- Top WATR: .8184
- Bottom WATR: .8102
- PWH: .8184
- PWL: .8126
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