EUR/JPY
EUR/JPY continued to make a slow trek higher last week, now creating a ranging pattern over the last couple of months. I’m generally bearish on both the euro and yen, so I think this is a pattern that may continue, especially the closer we get to the summer months.
My play for the week is to look for resistance at the top of the new range, right around the March high area around 131.00, for a chance to short into the longer-term weakness.
- WO: 129.10
- Top WATR: 130.59
- Bottom WATR: 127.62
- PWH: 130.11
- PWL: 127.46
GBP/JPY
GBP/JPY is creating a much different picture than EUR/JPY above, breaking above the minor resistance area between 179.00 – 179.50 and even the 180.00 major psychological level. This pair is in a short-term bullish mode in my opinion, and a pullback to the rising moving averages and bottom WATR level has a good chance of drawing interest from momentum buyers.
- WO: 180.32
- Top WATR: 182.00
- Bottom WATR: 178.65
- PWH: 181.01
- PWL: 177.21
EUR/GBP
EUR/GBP didn’t even bother to pull back higher last week, grinding lower and even getting a short-term burst to the downside thanks to bullish Bank of England meeting minutes. For me, the picture really hasn’t changed much, and that the risk is to the downside.
I’m sure for most traders, any level between the current price to the previous week’s high is a sell opportunity, but watch out for a break of that PWH because it could draw in breakout buyers since it was an area of previous strong interest.
- WO: .7161
- Top WATR: .7230
- Bottom WATR: .7093
- PWH: .7241
- PWL: .7117
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