Mizuho Corporate Bank

EUR
Comment: Little to add as we consolidate between the 9 and 26-day moving averages. For today we favour a small squeeze higher, to 1.3760/1.3772, where prices will probably stall.

Strategy: Attempt small longs on a dip to 1.3655/1.3630; stop below 1.3600. Target 1.3730 and maybe 1.3770.

EUR/JPY
Comment: Complex and not at all clear technically as we struggle under the Ichimoku ‘cloud’ but with a potential ‘double bottom’. A sustained break above 164.00 should trigger a short squeeze to 164.75, maybe as high as 165.75.

Strategy: Attempt tiny longs at 163.00, adding to 162.50; stop below 161.50. Add to longs on a sustained break above 164.00 for levels as above.

GBP
Comment: Rather like the Euro, consolidating above 2.0150, a fairly pivotal level. We favour an upside probe, if not today then on Monday, which will probably stall around 2.0450/2.0475.

Strategy: Attempt small longs on a dip to 2.0300, adding to 2.0250; stop well below 2.0200. Target 2.0450.

JPY
Comment: Clinging to weekly trendline support with a potential ‘irregular double bottom’. We feel that a short squeeze is due, with a sustained break above 119.50 setting off the move. This should take us up to 120.50 and probably no higher than 121.00 and is a selling opportunity for another downside probe late this month.

Strategy: Attempt tiny shorts at 119.20; stop/reverse above 119.65 for 120.50. Cover shorts ahead of 118.00.