Partner Center Find a Broker


It looks like that 133.00 major psychological area did manage to attract in more buyers last week, and on a combination of broad euro strength and broad yen weakness, the pair was able to make a nice run higher.

This week, a pullback should draw in more buyers, likely around the area where the bottom WATR and moving averages meet. This also happens to be the major psychological level of 135.00, so this is definitely an area to watch.

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

On the upside, the pair is retesting a previous resistance area that held and reversed the market mid-May. A break here could draw in more buyers, but it’s probably a good idea to wait for the break first.

  • WO: 136.28
  • Top WATR: 137.85
  • Bottom WATR: 134.71
  • PWH: 136.41
  • PWL: 133.10


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

Guppy’s rise last week was much more muted that EUR/JPY above, due to broad weakness in the British pound off of weak U.K. GDP data. Japanese yen weakness is probably much great, so the slow trend higher is more likely to continue, but if we do see the market start to trade below that rising trending and moving averages, short-term sellers may hop on this for a move to that area of the previous consolidation around 188.00

  • WO: 189.83
  • Top WATR: 191.56
  • Bottom WATR: 186.31
  • PWH: 190.72
  • PWL: 187.81


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

After failing to sustain a downside break of .7100, EUR/GBP reversed higher, likely on the broad euro strength and weak pound sentiment mentioned above.

The pair has now created a Fibonacci retracement pattern in a downtrend, and it looks like there is strong resistance at the 61% (which is also the .7200 major psychological level).

With the longer-term trend to the downside, I think .7200 will continue to hold as resistance unless the fundies continue to give us weak U.K. surprises.

  • WO: .7178
  • Top WATR: .7254
  • Bottom WATR: .7102
  • PWH: .7202
  • PWL: .7056

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.