Mizuho Corporate Bank

EUR
Comment: Almost a ‘bearish engulfing’ candle last week suggests consolidation again this week and possibly until the end of the year. We remind that dips to 1.4400 are seen as medium term buying opportunities for renewed US dollar weakness next year.

Strategy: Attempt small longs at 1.4675; stop below 1.4600. Target 1.4850.

EUR/JPY
Comment: Still trapped by the Ichimoku ‘cloud’. The 159.00 support area has become increasingly important.

Strategy: Sell at 162.50/163.00; stop above 164.50. Short term target 160.50, eventually 159.00.

GBP
Comment: Consolidating neatly roughly between 2.0400 and 2.0800. We remind that medium term while above 2.0000 the next move is to new recent highs.

Strategy: Attempt small longs at 2.0550; stop below 2.0300. Short term target 2.0800/2.0840.

JPY
Comment: Last week’s ‘bullish engulfing’ candle suggests USD/JPY will consolidate above 107.00 for at least another week or two. Rallies are still seen as selling opportunities for a move lower later this year. Momentum is now neutral.

Strategy: Attempt shorts at 110.50; stop above 111.25. Add to shorts below 109.50 for 108.00.