Mizuho Corporate Bank

EUR
Comment: Still stuck in the middle of the Ichimoku ‘cloud’ and bouncing from its lower edge again. This is seen as a market that is preparing for a sharp rally early this month where a re-test of the all-time high at 1.3853 is very likely.

Strategy: Attempt longs at 1.3645, adding to 1.3555; stop well below 1.3550. Short term target 1.3685/1.3700 then 1.3850.

EUR/JPY
Comment: In a holding pattern and looking just like the Yen and equity indices charts. We continue to favour a break higher this week but are getting impatient. More of the same today.

Strategy: Attempt longs at 157.30/157.00; stop below 154.50. 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: Another rally ahead of 2.0000. All dips are seen as long term buying opportunities for a move higher late this year.

Strategy: Attempt longs on a dip to 2.0140, adding to 2.0050; stop well below 1.9925. Cover longs ahead of 2.0400.

JPY
Comment: Still consolidating in a ‘triangle’ formation here, in the Yen crosses and equity indices. A holding pattern that will hopefully be resolved by the end of the week. If we can hold above 115.00 for the rest of the day we continue to feel prices should move on up to 117.00 - eventually.

Strategy: Attempt small longs at 115.25; stop/reverse below 114.80 for 114.25. Cover longs ahead of 117.00.