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

Thanks to a big surprise from the Bank of Japan last week, we only saw one way moves in the yen crosses and chart patterns blown away.  For this week, the question for EUR/JPY is, “will we see a pullback or a continuation move higher?”

My gut tells me that we’ll get some sort of pullback on profit taking ahead of a crazy busy economic calendar this week, especially the highly anticipated European Central Bank event this Thursday.  If a pullback does come, my area of interest is the major psychological area between 139.00 – 140.00 for a potential buy if the ECB decides to hold off on any new easing measures.

  • WO: 141.05
  • Top WATR: 142.08
  • Bottom WATR: 140.03
  • PWH: 140.80
  • PWL: 136.58


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

Much like EUR/JPY above, it was all about what was going on in Japan that had Guppy traders pushing the buy button furiously at the end of the week.  We could see some big volatility once again for guppy with an action packed forex calendar coming up, especially with the Bank of England monetary policy decision potentially being the main event for the pair.

Given renewed selling in the Japanese yen, buying Guppy seems like the only logical move this week, but like I mentioned above, a profit taking pull back is a strong possibility. If so, I’ll be looking for bullish reversal candles and the stochastic indicator in oversold territory starting around the bottom WATR levels, down to an area of previous consolidation back in September around the 177.50 handle.

  • WO: 180.15
  • Top WATR: 181.74
  • Bottom WATR: 178.56
  • PWH: 179.82
  • PWL: 173.39


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

EUR/GBP was much more calm last week than the other two major currency cross pairs that I regularly follow, with the British pound eventually winning out before the end of the week.  That means the longer-term down trend is still intact in my opinion, so I’ll be in sell mode for this week.  But it will be a “cautious” sell mindset given the monetary policy decisions from both the ECB and Bank of England on Thursday, which means I’ll be looking for a pullback higher to the top WATR area and falling moving averages around .7880 before the pair becomes interesting to me.

  • WO: .7811
  • Top WATR: .7877
  • Bottom WATR: .7783
  • PWH: .7943
  • PWL: .7822

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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.