Mizuho Corporate Bank

EUR
Comment: Holding below Friday’s ‘doji’ candle but giving up surprisingly little room. The Euro is no longer overbought but bullish momentum has eased dramatically. Do not assume that these tiny ranges will continue for much longer.

Strategy: Possibly attempt small longs at 1.4820; stop below 1.4700. Target 1.4950/1.5000.

EUR/JPY
Comment: Little to add as we consolidate inside the Ichimoku ‘cloud’. As and when we break below the 158.00 area prepare for a very dramatic collapse.

Strategy: Strategy remains unchanged: 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: Nothing 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: Strategy remains unchanged: 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: Holding above the recent low at 107.22 and likely to hold above here today. Surprisingly the US dollar is not 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 108.50; stop above 109.65. Add to shorts below 107.20 for 106.50 and maybe 105.50.a