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

Last week, the market got up to the top WATR level (137.45), an area that seems to have drawn in sellers to come in and take back power in EUR/JPY.  Since that top early in the week, it was straight downhill to bring the market to previous swing lows and a brief quasi-consolidation area between 133.50 – 135.00 two weeks ago.

With 133.50 looking like strong support at the moment, the risk-to-reward doesn’t look that great in either direction here.  But if the market does make its way up to the top WATR area once again, we could see sellers hop back in, especially since we’re seeing a downward trendline forming. And with the stochastic indicator in oversold territory, it looks like there’s a chance we may see a bounce to the upside.

  • WO: 134.39
  • Top WATR: 136.02
  • Bottom WATR: 132.77
  • PWH: 137.78
  • PWL: 134.46


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

British pound bulls held their ground last week against the Japanese yen with the pair move up to, and beyond, last week’s normal volatility range. I’m back on the Sterling rally train, but only if we see a pullback lower to the bottom WATR and moving averages area. I think there’s a good chance we could see buyers see that as an opportunity to hop in the longer-term uptrend. There’s strong resistance at the top WATR (and previous area of interest), and if it breaks that area, momentum players could likely step in.

  • WO: 193.61
  • Top WATR: 195.46
  • Bottom WATR: 191.76
  • PWH: 194.38
  • PWL: 189.35


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

That double top I pointed out last week seems to have worked like a charm, and it was a strong move to the downside thanks to broad euro weakness and Sterling strength. This means that my decision to cut my EUR/GBP short early was not the greatest one, but I’ll look to hop back in if we see a pullback.  The area between the top WATR level and the 200 MA looks enticing, especially since it lines up with a previous area of broken-support; and it would be in a Fibonacci retreacement area if the the market marks a new swing low and bounces.

  • WO: .6944
  • Top WATR: .7025
  • Bottom WATR: .6864
  • PWH: .7202
  • PWL: .6937

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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.