The upcoming week would be a huge week as far as volatility for the EURJPY and GBPJPY is concerned. The first 2 days of the week would be quiet and then the fireworks would begin with the Euro interest statement on Wednesday, the British interest statement on Thursday and some more important news on Friday...
The general expectation is for the Euro bank to raise the rate and for the GBP to maintain the rate as is but who knows....they might spring some huge surprises or they might go with expectations but in the accompanying statement, they might say something surprising...so watch out..
It is in such situation that pivots, resistances and supports would be most useful. The indicators simply do not work in such circumstances cos most of them are lagging whereas supports and resistances work time and again. For those who are new to support and resistances, i would be explaining them on this blog sometime over the week when i find time.
Supports and resistances should not be followed blindly. The momentum of the market should also be taken into consideration and for that u need experience in the market so that u get a 'feel' of the momentum. For eg. , last Friday, for the GBPJPY, there was a big resistance at 241.45...it tried getting past that figure for almost 10 hrs but once the big news from USA got released, u could almost feel the momentum and could feel that it would break that resistance. so a lot of money could have been made by shorting whenever it came close to that figure during the 10 hrs and then by going long at the same figure after the news was released and after u got the feel of the momentum...this is where experience comes in...and once one resistance is broken, the price simply shoots thru to the next resistance...
right now, EURJPY is close to its peak and hence a huge resistance...likewise with GBPJPY and USDJPY as well...so watch out...
anyway, i would keep you guys updated with all the pivots, supports and resistances to help you guys along!!