Mizuho Corporate Bank

EUR
Comment: Wake up time for many as the Euro follows some of the smaller currencies which are strengthening against the US dollar. If not today then next week we favour a re-test of the top of the big ‘triangle’. Note that we have already tested this three times so this time around there is a better chance of a successful break higher next month.

Strategy: Attempt longs at 1.4800 but be prepared to add to 1.4700; stop below 1.4600. Short term target 1.4850/1.4900.

EUR/JPY
Comment: Yen crosses are still very mixed trading in tiny ranges. EUR/JPY stalling yet again this morning against Fibonacci resistance 159.38 with yesterday’s high 159.55; the Ichimoku ‘cloud’ might add a little downside pressure. A drop below 157.00 is needed to turn momentum bearish.

Strategy: Sell at 159.00; stop well above 159.55. Short term target 157.70, then 156.70.

GBP
Comment: Our patience appears to be paying off but Cable is certainly not out of the woods yet. So many resistance levels between current levels and the pivotal level at 2.0000. This week it should try and hold above January’s low at 1.9337 but will probably remain stuck below 1.9750. A weekly close above 1.9800 might turn momentum bullish.

Strategy: Attempt longs at 1.9630 but be prepared to add to 1.9415; stop below 1.9300. Short term target 1.9800, then 1.9960/2.0000.

JPY
Comment: Closing below the 9-day moving average yesterday; then perhaps we are making too much of such microscopic moves. Watch for more signs of topping today, with a sustained break below 107.00 probably setting off a sudden drop to 106.00.

Strategy: Sell at 107.40, adding to 108.30; stop above 108.70. Add to shorts on a sustained break below 107.00 to cover ahead of 106.00.