Mizuho Corporate Bank

EUR
Comment: A small ‘shooting star’ at 1.5276 yesterday suggests consolidation below here today. Dips towards 1.5000 are seen as buying opportunities for a rally to 1.5600 later this year.
Strategy: Attempt small longs at 1.5185, adding to 1.5100; stop below 1.4950. Short term target 1.5250 then 1.5350, maybe 1.5550.

EUR/JPY
Comment: Big intra-day moves as we prepare for a serious downside test. Note that we are in the final stages of a very large topping formation so the implications looking forward are huge. The risk is that we move sooner and faster than we are currently pencilling in.
Strategy: Sell at 157.15/157.45; stop above 159.00. Short term target 156.00, then 154.00.

GBP
Comment: When will Cable traders wake up to its tremendous appeal? Price action over the last four days is seen as a small ‘flag/pennant’ which should set up for an imminent test of the top of the Ichimoku ‘cloud’. Note that this is extremely thick and prices might consolidate within it for a bit longer. A sustained break above 2.0000 will force many to re-think Cable where consensus opinion is tightly clustered for a weaker pound throughout this year.
Strategy: Strategy remains unchanged: buy at 1.9855/1.9800; stop below 1.9600. Short term target 1.9960/2.0000, long term 2.1000.

JPY
Comment: Yesterday’s small ‘hammer’ candle suggests we will consolidate above 102.59 today. Rallies should be limited to the 105.00/105.50 area and are seen as good selling opportunities for a drop later this month.
Strategy: Attempt shorts at 103.50, adding to 104.00; stop above 105.50. Add to shorts on a sustained break below 102.50 for 101.80.