Mizuho Corporate Bank

EUR
Comment: Nothing to ad since yesterday as we consolidate inside the Ichimoku ‘cloud’ and we shall allow for more work below 1.3700 again this morning. This is seen as a market that is preparing for a sharp rally early next month where a re-test of the all-time high at 1.3853 is very likely.

Strategy: Attempt small longs at 1.3665, adding to 1.3600; stop well below 1.3550. Short term target 1.3685 then 1.3850.

EUR/JPY
Comment: Holding very neatly at these higher levels, a relief after last week’s massive gyrations. A break higher 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 158.50 but only if prepared to add to 156.60; 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: Same as yesterday: nudging up into the Ichimoku ‘cloud’ and while rallies may be slow and hard won, we favour a move to 2.0350 if not today then next week. All dips are seen as long term buying opportunities for a move higher late this year.

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

JPY
Comment: Slow work but prices should move on up to 117.00 today/next week. The US dollar should hold above 115.00 today.

Strategy: Attempt small longs at 116.20, adding to 115.25; stop/reverse below 115.00. Cover longs ahead of 117.00.