Mizuho Corporate Bank

EUR
Comment: Rallying smartly from the 9 and 26-day moving averages and set to re-test the all-time high at 1.3853. We would prefer to see more work below here this month but pressure to sell the US dollar against anything whatsoever is mounting.

Strategy: Attempt small longs on a dip to 1.3770; stop below 1.3745. Target 1.3845.

EUR/JPY
Comment: Holding rather unsteadily at current levels. Expect more of the same today, maintaining a flexible approach.

Strategy: Attempt small longs at 162.00; stop/reverse below 161.50 for 161.00 and probably 160.65. Cover longs ahead of 164.00.

GBP
Comment: Not doing quite as well as the Euro or the Swiss franc, stalling at 2.0461 on Friday. Expect consolidation roughly between 2.0300 and 2.0500 for a couple of days.

Strategy: Attempt small longs on a dip to 2.0350/2.0300; stop well below 2.0200. Target 2.0450.

JPY
Comment: Opening at 117.95 and dropping like a stone in the Far East today. While below first resistance at 118.08 strong bearish pressure is maintained and we would be looking for a drop to the bottom of the weekly ‘cloud’ at 115.60. However, there is a small chance of a short squeeze to 119.00 which is seen as a good selling opportunity.

Strategy: Attempt shorts at 117.55/117.95; stop/reverse above 118.10 for 119.00 and probably no higher than 119.50. Cover shorts ahead of 117.00 but be ready to re-sell on a sustained break below here for 115.65.