Mizuho Corporate Bank

EUR
Comment: Pulling back by more than we had allowed for, into the middle of the large ‘triangle’ that has limited price action since November. Today it should try and steady itself at current levels.

Strategy: Attempt small longs at 1.4645; stop below 1.4570. Cover ahead of 1.4925 and do not re-buy until a clear break above 1.5000.

EUR/JPY
Comment: Dropping below the nine-day moving average to last week’s low. A sustained break below 155.50 targets the pivotal 152.00 area. Below here and downside momentum might overwhelm many.

Strategy: Sell at 156.00 but only if prepared to add to 158.00; stop above 159.55. Short term target 155.70/155.55, then 152.00.

GBP
Comment: Trying to steady itself at the 1.9650 area but not being helped by other currencies (except the Yen). Hopefully we will hold above here today allow Cable to creep slowly back up to 1.9900. We continue to favour buying dips for a move back up to 2.0600 this month.

Strategy: Buy at 1.9640; stop below 1.9600. Add to longs above 1.9800 for 1.9950 short term.

JPY
Comment: As we had warned, complacency has led to a small short squeeze ending in a ‘spike high’ yesterday. Now it must be time for a downside test.

Strategy: Sell on a bounce to 107.00, adding to 107.50; stop above 107.95. Cover shorts ahead of 105.70 but be ready to re-sell on a sustained break below 104.85 for 103.45.