Mizuho Corporate Bank

EUR
Comment: Creeping higher from trendline support, ahead of the Ichimoku ‘cloud’. Prices should hold above 1.4600 again today, and probably below 1.4800.

Strategy: Attempt longs at 1.4720, adding to 1.4660; stop below 1.4600. Target 1.4750/1.4775.

EUR/JPY
Comment: Poking its head above the top of the Ichimoku ‘cloud’ this morning. Allow for a cautious upside probe this morning, retreating late in the day. Note that this market is increasingly thin and that the bid/offer spread on EBS yesterday was often five pips wide. This can only get worse the closer we get to Christmas.

Strategy: Possibly attempt small shorts at 164.65; stop well above 165.00. Short term target 161.50, eventually 159.50.

GBP
Comment: Squeezing up towards 2.0500, as expected. If we hold above 2.0400 this morning allow for another strong rally to 2.0700.

Strategy: Buy at 2.0475, adding to 2.0400; stop below 2.0300. Short term target 2.0500, then 2.0600, maybe 2.0700.

JPY
Comment: Tiny little ranges in an increasingly thin market. Again look for signs of topping ahead of 112.00. Futures positions are collapsing ahead of December delivery and will have to be re-built in January.

Strategy: Sell at 111.00; stop well above 112.00. Add to shorts below 110.50 for 109.50