Mizuho Corporate Bank

EUR
Comment: Holding below Friday’s ‘doji’ candle but giving up surprisingly little room. Drops to 1.4400, and probably no lower than 1.4000, are seen as medium term buying opportunities.

Strategy: Possibly attempt small longs at 1.4850/1.4805; stop below 1.4700. Target 1.4950/1.5000.

EUR/JPY
Comment: Little to add as we consolidate inside the Ichimoku ‘cloud’. Other Yen crosses are catching up with the move lower that is most obvious in GBP/JPY. As and when we break below the 158.00 area prepare for a very dramatic collapse.

Strategy: Sell at 161.00/161.45; stop above 162.35. Add to shorts on a break below 159.35 for 159.00/158.70 short term and 154.00 further out.

GBP
Comment: Little to add as we consolidate in the middle of this month’s range. Cable is not overbought and momentum is just bullish. Expect more random moves today.

Strategy: Attempt small longs on a dip to 2.0655, adding to 2.0600; stop below 2.0500. Short term target 2.0750, possibly 2.0840.

JPY
Comment: Bouncing from a new recent low at 107.29 and likely to hold above here today. Surprisingly the US dollar is not particularly oversold and downside momentum has eased considerably. Medium term target 105.50/105.00. At-the-money implied volatility should remain high.

Strategy: Sell at 108.25/108.50; stop above 109.65. Add to shorts below 107.25 for 106.50 and maybe 105.50.