Mizuho Corporate Bank

EUR
Comment: Consolidating inside the Ichimoku ‘cloud’ and we shall allow for more work below 1.3700 again today and maybe until the end of the week. This is seen as a market that is preparing for a sharp rally next month where a re-test of the all-time high at 1.3853 is very likely.

Strategy: Attempt small longs on another dip to 1.3600/1.3565; stop well below 1.3550. Short term target 1.3685 then 1.3850.

EUR/JPY
Comment: Bouncing from 154.50 as expected to 159.00. A break through here if not today then early next week is a very real possibility and targets 161.00 at least and possibly all the way back up to 164.00/165.00.

Strategy: Attempt longs at 157.50, adding to 156.00; stop below 153.30. Cover longs ahead of 159.00 but be ready to re-buy on a sustained break above 159.75 for 161.00 short term and maybe 164.00.

GBP
Comment: Nudging up into the Ichimoku ‘cloud’ and while rallies may be slow and hard won, we favour a move to 2.0350 if not this week then next week. All dips are seen as long term buying opportunities for a move higher late this year.

Strategy: Attempt longs at 2.0155, adding to 2.0000; stop well below 1.9925. Cover longs ahead of 2.0400.

JPY
Comment: Rallying from 114.00 as expected and should move on up to 117.00 late this week/next week.

Strategy: Attempt small longs at 115.25, adding to 114.00; stop/reverse below 113.60 for 112.00. Cover longs ahead of 117.00.