Mizuho Corporate Bank

EUR
Comment: Yesterday’s new all-time high of 1.3799 begs an upside test to see if we can manage a new big figure at 1.3800. If not this morning then some time this afternoon we favour yet another upside squeeze, in turn forming a new high weekly close and creating more upside pressure for next week. Needless to say the Euro is overbought but as so many are not positioned for extreme US dollar weakness we may still move a lot higher.

Strategy: Attempt longs at 1.3780, adding to 1.3750; stop below 1.3650. Target record high 1.3799, then 1.3875 and then 1.4000.

EUR/JPY
Comment: Yet another new all-time high today at 168.95. The Euro is terribly overbought against the Yen but only a madman would try and call a top. A weekly close above 168.50 would maintain current strong bullish momentum. For this morning, and maybe all day, allow for consolidation between 168.00 and 169.00. We maintain our target at 170.00 for some time this month.

Strategy: Possibly attempt small longs on a dip to 168.50 but be prepared to add to 168.00; stop well below 167.00. Cover ahead of 168.95 but look to re-buy on a sustained break above 169.15 for 170.00/170.50.

GBP
Comment: Stalling at 2.0365 yesterday and likely to hold be low here this morning. Expect sideways work roughly between 2.2050 and 2.0350 but we remind that over the next ten days there is a chance of a squeeze to 2.0500.

Strategy: Attempt longs at 2.0285/2.0250; stop well below 2.0200. Target 2.0260 and possibly 2.0400.

JPY
Comment: Consolidating neatly between 122.00 and 122.50 as it seeks direction. Expect more of the same this morning, then probably a very slow cautious upside probe towards 123.00 where it will possibly stall.

Strategy: Attempt small longs on a dip to 122.20/122.00; stop/reverse below 121.80 for 121.00. Cover longs between 123.50 and 123.00.