EUR/JPY
EUR/JPY was one of the few pairs that saw elevated levels of volatility last week, and it was in favor of the bulls as the market took a one-way road up the 137.00 handle. This brings the market to a level that’s drawn strong interest in the past, acting as both resistance and support through July and August.
So, I’m inclined to be in wait-and-see mode on EUR/JPY to see where forex traders take it from here, but if there is a break higher, I am very interested in shorting around the 139.00 handle that formed a double top in mid-August.
- WO: 136.58
- Top WATR: 138.07
- Bottom WATR: 135.09
- PWH: 136.93
- PWL: 132.65
GBP/JPY
GBP/JPY saw similar price action to EUR/JPY above, but the resulting picture is much different as we have a clear Fibonacci retracement pattern forming on the one-hour forex chart.
As anyone who’s been following me for a while knows, I tend to go with textbook setups of shorting right around these levels on this type of pattern, but with the highly anticipated FOMC monetary policy decision this week, I’m going to hold tight. But as always, if that 61% Fib area gets tested, it’s likely to draw in some selling interested, especially from risk sentiment traders.
- WO: 185.95
- Top WATR: 188.08
- Bottom WATR: 183.82
- PWH: 187.33
- PWL: 180.44
EUR/GBP
Not much changed with EUR/GBP last week, continuing its tight consolidation pattern which formed after a sharp rally higher in mid-August. Could this be the week we finally see a breakout? With the forex looking light on top-tier events (mainly only U.K. events), I think it’s a low probability of a strong breakout.
But again, with the FOMC potentially changing global financial market sentiment this week, I’m going to stay on my toes either way. For now, since the .7250 seems to be drawing in buyers every week, I’ll look there to take action if it holds as support once again for a potential long position.
- WO: .7345
- Top WATR: .7421
- Bottom WATR: .7269
- PWH: .7357
- PWL: .7240
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