Mizuho Corporate Bank

EUR
Comment: Little to add as we consolidate just under the all-time high at 1.3670/1.3683 and interesting how limited recent downside probes have been. Sooner or later we expect new records to be set and potentially big moves in uncharted territory. The Euro is slightly overbought.

Strategy: Attempt small longs at 1.3595/1.3565; stop well below 1.3525. Cover ahead of the all-time high at 1.3670/1.3683 but be ready to re-buy above 1.3700 for 1.3875 then 1.4000.

EUR/JPY
Comment: Hovering just under the new all-time high at 168.55. It is terribly overbought but immediate bullish momentum is maintained while above 167.00. This suggests that we shall move on up to our long term target at 170.00.

Strategy: Attempt longs at 167.70/167.50; stop below 166.75. Add to longs above 168.55 for 170.00/170.50.

GBP
Comment: Consolidating fairly neatly at the highest levels for over a quarter of a century. Note that Cable is not overbought and bullish momentum is steady. Allow for a downside probe this morning, probably no lower than 2.0080 but possibly all the way down to 2.0000, than recovering slowly this afternoon.

Strategy: Attempt small longs at 2.0135/2.0100 but be prepared to add to 2.0035; stop below 1.9985. Target 2.0200/2.2050.

JPY
Comment: Consolidating neatly in a ‘triangle’ at these relatively high levels. The US dollar is not overbought and momentum is zero. At-the-money implied volatility should drift down to 6.00%, For this morning expect another upside probe of the 123.49/123.76 area. The probably drifting to 123.00.

Strategy: Possibly attempt small shorts at 123.50/123.75; stop above 124.25. Cover ahead of 123.00.