EUR/JPY
Another big sell week for the Japanese yen, but we FINALLY get something resembling a pullback in EUR/JPY. It’s hard for me to buy euros after Draghi’s commitment to battling deflation last Friday, but for those who are looking for a momentum play, this one is looking good as the market is hitting a potential support area (moving averages and Fibonacci retracement).
We may not see sell orders until a retest of the previous week high area, which makes the potential risk-to-reward of playing the trend higher still attractive.
- WO: 145.83
- Top WATR: 147.05
- Bottom WATR: 144.61
- PWH: 145.14
- PWL: 144.78
GBP/JPY
Guppy slightly broke out of its sideways price action last week, able to slowly break above the strong resistance around the 184.50 area.
For me, I think buyers may start to dip their toes back in around current levels, but it could go all the way down to the bottom WATR level before support may really kick in.And if it somehow gets down to the previous week’s low, that’s something buyers will definitely want to pay attention to as it held strongly through November.
- WO: 184.43
- Top WATR: 186.12
- Bottom WATR: 182.74
- PWH: 186.14
- PWL: 181.07
EUR/GBP
The October high area just under .8050 was tested and held like a champ last week, partially thanks to a little push from ECB President Mario Draghi on Friday. To me, the area between .8000 – .8050 makes a great case for throwing on sell orders and see if the market can get back to the .7800 handle, or even the September lows around .7770.
But beware that .7900 was a strong level of interest throughout the Summer months, so we may end up seeing no pullback if it turns into a longer-term support-turned-resistance setup.
- WO: .7906
- Top WATR: .7957
- Bottom WATR: .7856
- PWH: .8039
- PWL: .7906
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