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

Last week, EUR/JPY crept higher, but maintained the range established in the previous couple of weeks between 138.00 – 141.00. I’d officially call this market is in consolidation mode, making a break in either direction the next move to look for.

Zooming out a bit in time frame it’s still in a slight uptrend, which would make 136.50 the area to watch as the next potential support area, and the likely trade to watch is a break above the 141.00 area. With a strong catalyst, the latter could draw in momentum players and take the pair to new highs.

  • WO: 140.07
  • Top WATR: 141.70
  • Bottom WATR: 138.45
  • PWH: 140.65
  • PWL: 138.08


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

Last week, thanks to positive U.K. data leading to broad Sterling strength, Guppy shot higher by a few hundred pips before running out of steam just under the 196.00. After such a strong move it’s normal to see profit taking, so a pullback could be in the works this week, making the rising moving averages, Fibs, and bottom WATR an area to watch for more buyers to hop in.

An upside breakout of the PWH is also something to consider given the strength of the British pound lately, and with multi-hundred pip moves a possibility, forex traders may keep up the momentum all the way up to the super major psychological handle of 200.00.

  • WO: 195.38
  • Top WATR: 197.12
  • Bottom WATR: 193.65
  • PWH: 195.84
  • PWL: 191.42


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

There was no slow down of the downward move in EUR/GBP last week as we saw sellers jump in on every slight bounce in the pair. I’ve still got a bearish bias on EUR/GBP going into this new week, but with the pair approach a major support area between .7000 – .7100, the risk-to-reward from current levels isn’t that appetizing at the moment.

Of course, a pullback always looks great in trending markets, and with both the longer and shorter term price action pointing to the downside, I’ll consider throwing on some shorts on a pullback to the 200 moving average and top WATR/PWH area around .7230.  And if the .7000 handle is tested and breaks–and with the right catalyst–it’s likely we’ll see momentum players hop in to take the pair lower.

  • WO: .7159
  • Top WATR: .7237
  • Bottom WATR: .7081
  • PWH: .7250
  • PWL: .7125

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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.