Mizuho Corporate Bank

EUR
Comment: Bouncing from the 38% retracement level, consolidating between the 9 and 26-day moving averages. For today expect more of the same.

Strategy: Possibly attempt small shorts at 1.3700/1.3725; stop above 1.3775. Cover at 1.3625 and buy here on signs of basing

EUR/JPY
Comment: Trying to stabilise against weekly trendline and retracement support. Expect a drift towards 162.00 this morning, followed by a short squeeze through 164.00 if not today then later this week. We shall continue with a very cautious stance and be prepared to turn positions as necessary as we move into consolidation and possibly a deeper correction mode.

Strategy: Attempt small longs at 162.50, adding to 161.50; stop below 160.50. Cover longs ahead of 164.00 but be ready to re-buy on a sustained break above here for 165.00, maybe 165.80.

GBP
Comment: Stabilising above 2.0150, a fairly pivotal level, and likely to do the same today. Any rally is likely to be capped at 2.0500 and the monthly candle looks as though will end up as a ‘shooting star’ suggesting we will hold below 2.0656 for several months.

Strategy: Attempt small longs on a dip to 2.0225; stop well below 2.0100. Target 2.0425.

JPY
Comment: Bouncing from weekly trendline support and note how Chikou Span has held above the Ichimoku ‘cloud’. The US dollar is still oversold and the monthly candle looks as though it will be a ‘bearish engulfing’ one. For today expect more consolidation between 118.00 and 119.25, where short squeezes to 120.50/121.00 (and no higher than 122.22) are seen as selling opportunities.

Strategy: Possibly attempt small shorts at 119.00/119.25 but be prepared to add to 120.50; stop above 122.25. Cover half of shorts at 118.10 and the other half ahead of 116.50.