EUR/JPY
Like many forex pairs last week, EUR/JPY volatility slowed down and the pair bounced higher. I think the pair is rangebound for the week given the lack of major catalysts coming up on the forex calendar, and that it could go either way depending on risk sentiment.
I’ll be watching for a retest of the top WATR area to the major psychological level of 140.00 for sellers to possibly hold it and reverse.
- WO: 138.75
- Top WATR: 139.64
- Bottom WATR: 137.86
- PWH: 138.90
- PWL: 137.72
GBP/JPY
Guppy continued to make its way higher last week on broad Sterling strength and relatively fresh U.K. catalysts, so it’s safe to assume Pound bulls are likely to continue to dominate.
A pullback to the moving averages, PWL, and bottom WATR levels certainly look like a new buying opportunity. And whether or not we get that pullback, the top WATR/major psychological area at 175.00 looks like it could be the top for the week.
- WO: 173.74
- Top WATR: 174.88
- Bottom WATR: 172.61
- PWH: 174.10
- PWL: 172.73
EUR/GBP
Last week, EUR/GBP went into consolidation mode, understandable after a surprisingly strong downside move the week before and a lack of any fresh catalysts. We may see the same consolidation behavior this week, but keep in mind that we are approaching the end of June and the second quarter.
We typically see position squaring and profit-taking behavior during these times of calendar, so don’t be surprised if we get a pullback from the downtrend and possibly fresh selling around the PWH/two WATR, .8025 – .8050 area.
- WO: .7986
- Top WATR: .8028
- Bottom WATR: .7945
- PWH: .8025
- PWL: .7960
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