For the cross-currency pairs, it seems that volatility continues to tighten up. We’ve got some major events this week to possibly change that, so here are this week’s must-watch levels on EUR/JPY, GBP/JPY, and EUR/GBP!
EUR/JPY
It was a slow grind higher for EUR/JPY last week and we can see that volatility was on the low side with the highs and lows of the week almost have of the normal volatility range. This week is stacked with data from Europe, so this may play out as a breakout scenario.
A break above the PWH looks like a possible entry for EUR/JPY bulls. For the bears, the next support area runs between 132.60 to 133.00, which is a good amount of pips from the current levels.
- WO: 133.85
- Top WATR: 135.14
- Bottom WATR: 132.57
- PWH: 134.19
- PWL: 132.65
GBP/JPY
On the higher timeframes, 159.50 – 160.00 is an area of major resistance, and on a break of the PWH, the recent trend higher could be limited to that area.
The pair is displaying really tight consolidation at the moment, so I wouldn’t rule out a break to the downside (targets around 157.00 makes sense) with the right catalyst. We will probably get some from the UK this week with a few tier 1 events on the forex calendar.
- WO: 158.29
- Top WATR: 159.86
- Bottom WATR: 156.73
- PWH: 158.69
- PWL: 156.72
EUR/GBP
EUR/GBP traders kept the range tight last week at around 66 pips–will the range continue? We’ve got data from both Europe and the UK, but unless they come out really far from expectations, I think the volatility could be contained within the range.
Watch .8500 as of this week’s potential top, while .8400 may serve as a buying opportunity as long as the data doesn’t come out with a big surprise.
- WO: .8461
- Top WATR: .8513
- Bottom WATR: .8410
- PWH: .8497
- PWL: .8431
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