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

EUR/JPY continued its downtrend moves last week, clearly staying below the 100 and 200 moving averages.  It looks like the market is back into a solid downtrend, which gives me two possible short setups to watch for this week: 1) pullback and resistance at the top WATR/MA’s or 2) a break of the PWL. Broad risk aversion has played a big factor in Japanese yen strength lately, so a change in sentiment is something I have to be aware of as well.

  • WO: 137.22
  • Top WATR: 138.11
  • Bottom WATR: 136.33
  • PWH: 139.14
  • PWL: 136.86


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

The extremely tight range in Guppy finally broke last week, unfortunately in the opposite direction that I was setup for with my GBP/JPY long trade idea.  Now trading around the 175.00 major psychological handle, we could be in for a short-term bounce to the top WATR/Fibonacci retracement area and moving averages, but like EUR/JPY above, I gotta be open to a break of the PWL as a signal to jump in this possible change of direction.

  • WO: 175.05
  • Top WATR: 176.43
  • Bottom WATR: 173.68
  • PWH: 178.18
  • PWL: 174.32


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

EUR/GBP is already pulling higher from its longer-term downtrend, but with the pair trading above the moving averages, I think I’ve got to be a little more cautious with this pair in that there might not be a clear direction at the moment.  With a major event coming up on the forex calendar for the Bank of England, I think ranging conditions are likely until then.  For now, I’m still bearish on the pair, watching closely for resistance between top WATR and the major psychological level of .7900

  • WO: .7839
  • Top WATR: .7885
  • Bottom WATR: .7793
  • PWH: .7861
  • PWL: .7766

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This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.