Mizuho Corporate Bank

EUR
Comment: One of the strongest weekly closes ever, just under the all-time high at 1.3670/1.3683. Sooner or later we expect new records to be set and potentially big moves in uncharted territory. Dips could be quite sharp and deeper than many might imagine, so take your time.

Strategy: Possibly attempt small longs on a dip to 1.3585; stop well below 1.3525. Cover ahead of the all-time high at 1.3670/1.3683.

EUR/JPY
Comment: A new all-time high at 168.55 and many other Yen crosses hitting new recent highs. It is terribly overbought, bullish momentum is not quite as strong as one might think, but picking a top is a ridiculous idea. This suggests that we shall move on up to our long term target at 170.00.

Strategy: Attempt longs on a dip to 168.15 but be prepared to add to 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. A small ‘spike high’ on the weekly chart suggests we will probably hold below 2.0208 this week. However, note that Cable is not overbought and bullish momentum is steady. Allow for a downside probe this morning, possibly all the way down to 2.0000, than recovering slowly this afternoon.

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

JPY
Comment: Consolidating neatly at these relatively high levels. The US dollar is not overbought and momentum is zero. For today expect random fairly small moves either side of 123.40.

Strategy: Possibly attempt small shorts at 123.60, adding to 124.00; stop above 124.25. Cover ahead of 123.00.