First up, lemme give some props to NBA superstar Kevin Durant and Chelsea mainstay Didier Drogba! That’s what I call coming through in the clutch! Durant’s 3-point shot put the Thunder up 3-1 versus the Lakers, while Drogba’s penalty shot delivered Chelsea the Champion’s League title!
Last week it was all about yen domination, as EUR/JPY and GBP/JPY set off for new lows. Meanwhile, EUR/GBP recovered from its recent losses to close a gap from a couple of weeks back (thanks for pointing that out in your Daily Chart Art, Big Pippin!). What could be in store for us this week?
Without further ado, here’s this week’s Weekly Watch!
EUR/JPY
After bottoming out at around 100.20 last week, EUR/JPY has now made its way back up above the 101.00 level major psychological level (MaPs). I’m thinking that the 102.00 will be a major level to keep an eye on, seeing as how it held as support before breaking down late last week. If the price manages to breach this level, then I think 103.00 will be the next resistance area for EUR/JPY.
- WO:101.09
- Top WATR: 102.36
- Bottom WATR: 99.82
- PWH: 103.39
- PWL: 100.21
GBP/JPY
Just like EUR/JPY, Guppy broke out of consolidation and promptly dropped 300 pips to set new lows. It’s starting to look like we’re seeing consolidation again before the bears gear up for another strong down move. If we see a solid candlestick close below the previous week’s low (PWL), it may be time to start hopping on the long yen bandwagon!
- WO:125.21
- Top WATR: 126.58
- Bottom WATR: 123.84
- PWH: 128.90
- PWL: 124.65
EUR/GBP
What a difference a week makes! After it looked like EUR/GBP was just gonna keep melting down the charts, the pair made a sweet comeback last week and is now close to retesting the .8100 MaPs.
For now, I’ll likely wait for a pullback to the .8050 minor psychological handle (MiPs) as this area has recently generated a lot of interest. Up top, I’ll also be waiting to see how price reacts to the top weekly ATR (WATR) as a potential resistance point.
- WO: .8074
- Top WATR: .8128
- Bottom WATR: .8020
- PWH: .8080
- PWL: .7950
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