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

In last week’s “Weekly Watch,” I said that “there’s no reason to go bullish on EUR/JPY until we see a sustained break above the moving averages,” and “until then I’m looking to short on a retest of the MA’s.”  Well, I didn’t take that short on the retest, so I’m kicking myself now as the pair did retest the MA’s and dropped like a rock thanks to the ECB coming out with a bigger QE program than expected.

For this week, I still don’t see a reason to go short, and once again, I’ll probably try to hop in on a pullback; with such a big move last week, it wouldn’t be surprising to see profit taking.  Also, we’ve got a bullish divergence forming that could indicate a short-term bottom.  So, retest of the 134.00 is what I’m eyeing, which is a full WATR retracement and possibly another retest of the falling moving averages by the time it gets there, if it does.

  • WO: 131.19
  • Top WATR: 132.74
  • Bottom WATR: 129.64
  • PWH: 137.64
  • PWL: 130.93


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

Last week was a tricky one thanks to the packed forex calendar, and ultimately, Guppy was one of many yen pairs dragged down by the EUR/JPY drop on the big ECB event.

On the technical side, this pair is in bear mode, and I think it’ll remain there until we see a solid break above the top WATR level/major psychological level of 178.00, with 180.00 as the next resistance area to watch.  And I wouldn’t be a big bear just yet until 176.00 breaks (where I’ll have to close my GBP/JPY long position early) and that bullish divergence signal gets invalidated.

  • WO: 176.34
  • Top WATR: 178.10
  • Bottom WATR: 174.58
  • PWH: 180.28
  • PWL: 176.17


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

EUR/GBP is also showing a bullish divergence setup, which just may play out after a huge drop last week.  Over the past month, this pair has dropped around 600 pips, huge for this slow mover, so if it does pullback higher, I’m thinking that .7500 – .7600 is not out of the question for a retest and hold as potential resistance. By then, we should see the moving averages in that area, which makes for another argument of potential resistance in the longer-term downtrend.  Of course, a break of the previous week low may signal momentum buyers to jump in this sinking ship!

  • WO: .7442
  • Top WATR: .7504
  • Bottom WATR: .7380
  • PWH: .7713
  • PWL: .7429

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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.