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EUR/JPY

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

Without any major news stories from the currency markets last week, EUR/JPY volatility tightened up to trade within its normal weekly range.  I think we could see the same thing this week, typical tight behavior at the beginning of every month, but this tight behavior could also be a setup for a breakout with the right catalyst (e.g., Greece bailout talks fail, geopolitical issues in Yemen and Ukraine, etc.).

For now, I’m watching the 131.50 area (PWH and top WATR) as a potential sell area because of how strongly it held as resistance last week, but the 127.50 – 128.00 area also is one to watch for counter-trend traders as it is the lows of March.

  • WO: 129.87
  • Top WATR: 131.45
  • Bottom WATR: 128.32
  • PWH: 131.54
  • PWL: 129.03

GBP/JPY

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

It’s been nothing but downside pressure coming for Guppy in the last few weeks on a combination of bearish U.K sentiment and overall broad risk-off sentiment in the financial markets. I’m not one to fight the trend, so the only play I see at the moment is potential resistance around the top WATR and PWH area, which also held as resistance very strongly two weeks ago. But I do expect volatility to pick up a bit in Guppy with some top tier events coming out from the U.K., so I’ll watch those levels very closely because a breakout to the upside could draw in plenty of buy orders from both profit takers and momentum players.

  • WO: 177.52
  • Top WATR: 179.28
  • Bottom WATR: 175.76
  • PWH: 179.69
  • PWL: 176.49

EUR/GBP

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

Is this a new trend to the upside that we see in EUR/GBP? For now, I’ll have to take it as it is, but the bottom WATR and PWL low is definitely the area to watch because on the higher timeframes, EUR/GBP is still in major downtrend. If those levels break, it could be a quick downside move, especially with lots of data coming up for both countries on the forex calendar. On the upside, I don’t think we’ll see sell orders until the .7500 major psychological handle, so short-term bulls may have a few more pips to go before considering some profit taking.

  • WO: .7317
  • Top WATR: .7389
  • Bottom WATR: .7245
  • PWH: .7385
  • PWL: .7228

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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.