Mizuho Corporate Bank

EUR
Comment: Yesterday’s ‘spike high’ at 1.3660, ahead of the all-time high at 1.3670/1.3683, suggests we will hold below here again today. Dips could be quite sharp and deeper than many might imagine, so take your time.

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

EUR/JPY
Comment: Nudging to a new all-time high at 167.47. Similar idea for many other Yen crosses and they are likely to continue to help each other higher. This suggests that we shall move on up to our long term target at 170.00.

Strategy: Attempt longs on a dip to 167.25/167.00; stop below 166.00. Add to longs above 167.50 for 168.50 then 170.00.

GBP
Comment: Consolidating pretty neatly at the highest levels for over a quarter of a century. It is not as overbought as it was yesterday and bullish momentum should increase on a weekly close above 2.0100. 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 2.0095 but be prepared to add to 2.0035; stop below 1.9985. Target 2.0200.

JPY
Comment: Nudging slowly above 123.00 and we continue to target 123.50. The US dollar is not overbought and it’s all a bit dreary really.

Strategy: Attempt longs on a dip to 122.90; stop below 122.25. Cover ahead of 123.50