Mizuho Corporate Bank

EUR
Comment: Nothing to add as we trade just under a new record high (1.3853) as several other currencies gain against the US dollar. The Euro is a little less overbought and bullish momentum has eased. Immediate upside pressure is maintained while above 1.3700 and we favour another small nudge higher today.

Strategy: Attempt small longs at 1.3815 adding to 1.3780; stop below 1.3700. Target 1.3850, then 1.3875 and then 1.4000.

EUR/JPY
Comment: Slipping to a low at 165.38 and likely to try and hold above here today and maybe for the rest of the week. Having given up 50% of the rally from early June to July, some will be forced to review current positioning. We shall continue with a very cautious stance and be prepared to turn positions as necessary.

Strategy: Possibly attempt tiny longs at 166.00/165.50; stop/reverse below 165.00 for 164.35. Cover longs at 166.95 and sell between here and 168.00; stop above 169.05.

GBP
Comment: Consolidating under 2.0656 but giving up very little room to the downside as has been the case since early June. Many will be kicking themselves for not having seen the obvious. A certain degree of upside pressure is maintained while above 2.0450.

Strategy: Possibly attempt small longs at 2.0600/2.0557; stop below 2.0450. Target for 2.0700/2.0750.

JPY
Comment: Comfortably reaching our 120.00 target and losing 50% of the rally from March to June. The US dollar is oversold and although bearish momentum has increased we will probably try and hold above 119.80 today. Rallies to 120.70/121.00 are seen as selling opportunities for a subsequent drop to weekly trendline support at 119.20.

Strategy: Attempt small shorts at 120.35 but be prepared to add to 121.00; stop above 122.25. Cover half of shorts at 120.00 and the other half ahead of 119.00.